Economic Analysis of Financial Regulation - Types of financial regulation - Banking crisis throughout the world
7 important questions on Economic Analysis of Financial Regulation - Types of financial regulation - Banking crisis throughout the world
Why is the deposit insurance not to blame for some of these banking crisis?
In what resulted the global financial crises?
• more capital against losses and better quality of capital
• new guidelines for remuneration practices of banks (2010)
How did they create a better protection of private investors?
• EBA: European Banking Authority was set up to oversee national bank regulators in the EU to fight against regulatory arbitrage
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What does the EBA do? (European Banking Authority)
• Setting of minimum capital requirements for banks operating in the EU
Impact of the global financial crisis on regulation?
• Financial innovations of subprime mortgages and structured credit products like CDOs helped trigger the crisis
Pros and cons of financial regulation?
Cons: problems of the originate to distribute business model
What is the danger of overregulation?
Choking financial innovation that can benefit households and businesses
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