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We explore and summarize the evolution in bank capital regulations and bank risk after the global financial crisis. Using a new survey of bank regulation and supervision covering more than 120 economies , we show that regulatory capital increased, but some elements of capital regulations became laxer. Analyzing bank-
Nov 27, 2020 · In the United Kingdom, for example, risk-weighted capital ratios doubled over the 10 years after the crisis. Legislation requiring banks to apply more of their own resources and those of their owners to resolution in case of insolvency may reduce the call on the taxpayer in future crises.
- Catherine R Schenk
- 2021
Financial crises are almost always followed by regulatory reform. The tenth anniversary of the GFC provides an opportunity to reflect on these reforms. New Data – World Bank –Bank Regulation and Supervision Survey – cover 160 countries. Opportunity to assess regulatory reform in developing countries.
Banking crises often uncover weaknesses in the design and implementation of bank regulation and supervision. The latest 2007-2009 global financial crisis (GFC) was no different, and it has sparked a heated discussion on the lessons to be learned and how to design efficient and safer banking systems. One clear
The regulatory reforms aimed to discourage bank risk-taking, limit bank failure and ensure soundness in the financial system. Nevertheless, whether increased capital regulation reduces bank risk-taking incentives is a much-debated area in banking literature.
- Roshanthi Dias
- 2021
Aug 16, 2024 · By reducing the risk of future financial crises and the consequences of financial instability for the real economy, these reforms were an essential contribution to the G20’s primary objective of strong, sustainable and balanced growth. The priority reforms areas are set out below.
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Jul 31, 2024 · Using contemporaneous data for 40 countries, we show that institutional mechanisms, investor protection, bank regulation and supervision (BRS) rules, and ownership, reduced bank risk-taking around the Global Financial Crisis (GFC) and the Eurozone Crisis/Sovereign Debt Crisis periods.
