Danielsson, J. (2015) “Post-Crisis banking regulation: Evolution of economic thinking as it happened on Vox“, VoxEU Organisation, 02 Μαρτίου.
This column introduces a new Vox eBook collecting some of the best Vox columns on financial regulations, starting with the fundamentals of financial regulations, moving on to bank capital and the Basel regulations, and finishing with the wider considerations of the regulatory agenda and the political dimension. Collecting columns from over the past six years, this eBook maps the evolution of leading thought on banking regulation.
Everybody seemed to be caught off guard by the Global Financial Crisis that started in 2007, not the least the financial regulators. They missed all the excessive risk-taking, the build-up of financial imbalances and the accumulation of vulnerabilities in the years and decades before the Crisis. What went wrong and how can we fix it?
The common refrain has it that there was excessive deregulation and that simply by ramping up regulatory intensity, all will be fine. Does this view stand up to scrutiny? Superficially, the signs point that way. The US distinction between commercial investment banks and investment banks was no more, and neither was Bretton Woods with its assorted restrictions. However, the rest of the world never had the Glass–Steagall Act, and we just replaced macro-regulations with micro-regulations. Broad-brush activity restrictions were swept away, with regulations controlling the minutiae of banks’ operations put in their place. Indeed, the reality is much more complex than most critics would have it. Is not that we didn’t regulate with sufficient intensity, we just didn’t regulate correctly.
If we want to fix the problem of financial regulations, we need a more nuanced debate, and the place to see that is on the pages of VoxEU.org. The world’s leading analysts have debated financial regulations in its columns, avoiding the shrillness of the mainstream media and focusing on solid arguments and sound facts. While the Vox commentators often reach different conclusions, they are precise in their analysis and therefore directly shape the regulatory reform agenda.
This eBook collects some of the best Vox columns on financial regulations ranging over a wide area, starting with the fundamentals of financial regulations, moving on to bank capital and the Basel regulations, and finishing with the wider considerations of the regulatory agenda and the political dimension.
Σχετικές αναρτήσεις:
- STRATFOR (2014) “Europe: Building a Banking Union“, Europe’s Economic Crisis Timeline, 30 Οκτωβρίου.
- Bonczek, T., Fuest, C. & Schröder, M. (2014) “Who is afraid of the Asset Quality Review? Potential Losses and Capital Shortfalls in the European Banking System“, Centre for European Economic Research, Discussion Paper No. 14-074 , Οκτώβριος.
- Dullien, S. (2014) “How to complete Europe’s banking union“, Policy Brief, European Council on Foreign Relations – ECFR, 02 Ιουνίου.