Financial Regulation in the European Union After the Crisis: A Minskian Approach

ISBN-13: 9780367878306 / Angielski / Miękka / 2019 / 174 str.

Domenica Tropeano

Opis

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

Spis treści

Part 1

Chapter 1

Minsky’s institutional analysis of the development of the economy and how financial regulation fits in it.

System’s endogeneous dynamics versus institutions and interventions.

Financial innovation as bricolage.

Minsky on money manager capitalism, finance and thwarting systems.

Chapter 2

Recent proposals of change in financial regulation inspired by Minsky.

Is the central bank the only circuit breaker left ?

Conclusions

Chapter 3

Basel III: the revised capital requirements, the leverage ratio, and total loss absorbing capacity.

Introduction

The revised capital requirements. Just a change in the weights?

How the revision in capital requirements should work in practice.

Other macroprudential measures.

The Leverage Ratio

The definition of leverage ratio and how to calculate it.

Too much hope in this new tool?

Total loss absorbing capacity in the EU.

Conclusions

Chapter 4

Two additional regulatory metrics: the Liquidity Coverage Ratio and the Net Stable Funding Ratio.

The Liquidity Coverage Ratio.

How to calculate the numerator of the ratio.

How to calculate the denominator of the ratio.

Conclusions about the theoretical underpinnings of the ratio.

Eba’s studies on the application of the BCBS designed liquidity coverage ratio to the European Union banking system.

The Net Stable Funding Ratio.

How to calculate the net stable funding ratio.

The treatment of derivatives in the NSFR and the discussion with industry representatives.

What type of banking does the NSFR favor?

Conclusions

Chapter 5

Main consequences of the interaction between new regulatory rules (risk weighted capital requirements, lev

O autorze

Domenica Tropeano is Associate Professor at the Department of Economics, Università di Macerata, Italy.