European University Institute Library

Financial regulation in the European Union after the crisis, a Minskian approach, Domenica Tropeano

eng

Includes bibliographical references and index

illustrations

index present

non fiction

Financial regulation in the European Union after the crisis

bibliography

1008767620

Domenica Tropeano

Routledge critical studies in finance and stability, 12

a Minskian approach

"In the wake of the financial crisis, new regulatory measures were introduced which, along with changes in monetary and macroeconomic policy, have transformed the global financial structure. However, this new financial structure displays various fragilities. A new shadow banking system has grown both inside and outside the traditional banks and the divergence between core and periphery countries' banks has increased further due to both the new regulations and the European Central Bank's very peculiar interventions. Following Minsky's approach, this volume explores the interplay between monetary policy, regulation and institutions in the aftermath of the great financial crisis. Minsky's insights are used to interpret the recent regulatory changes and consider how they have affected the evolution of banks and financial markets. The unfortunate conclusion is that the changes in financial regulation introduced in various jurisdictions and inspired by the work of the Basel Committee, have not succeeded in thwarting the instability of the economic system. Instead, the mix of policies implemented so far has brought about increased fragility in the financial system. Minksy's work on financial stability offers alternative solutions which policy-makers need to consider to resolve these issues." --, Provided by publisher

Minsky's institutional analysis of the development of the economy and how financial regulation fits in it -- Recent proposals of change in financial regulation inspired by Minsky -- Basel III : the revised capital requirements, the leverage ratio, and total loss absorbing capacity -- Two additional regulatory metrics : the liquidity coverage ratio and the net stable funding ratio -- Main consequences of the interaction between new regulatory rules (risk weighted capital requirements, leverage ratio, liquidity ratio, net stable funding ratio) and the new mandatory resolution regime for banks -- Financial fragility in the European crisis : three episodes -- Deleveraging in European banking and financial stability 2010-13 -- Italy's banking crisis -- Index