Shadow Banking Regulation
Tobias Adrian,Adam B. Ashcraft +1 more
TLDR
In this article, the authors provide a conceptual framework of shadow banking regulation and review these reform efforts for shadow funding sources including asset-backed commercial paper (ABCP), tri-party repurchase agreements (repos), money market mutual funds (MMMFs), and securitization.About:
This article is published in Review of Financial Economics.The article was published on 2012-11-01 and is currently open access. It has received 66 citations till now. The article focuses on the topics: Shadow banking system & Shadow (psychology).read more
Citations
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An Overview of Macroprudential Policy Tools
TL;DR: Macro-prudential policies, such as caps on loan to value ratios, limits on credit growth and other balance-sheet restrictions, countercyclical capital and reserve requirements and surcharges, and Pigouvian levies, have become part of the policy paradigm in emerging markets and developed countries alike as discussed by the authors.
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Shadow Banking and Bank Capital Regulation
TL;DR: In this paper, the authors argue that banks are subject to capital requirements because their privately optimal leverage is higher than the socially optimal one, and that banks fail to internalize all costs that their insolvency creates for agents who use their moneylike liabilities to settle transactions.
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Banks' Financial Reporting and Financial System Stability
Viral V. Acharya,Stephen G. Ryan +1 more
TL;DR: In this article, the authors examine how research on banks' financial reporting, informed by the financial economics literature on banking, can generate insights about how to enhance the stability of the financial system.
Journal ArticleDOI
An Overview of Macroprudential Policy Tools
TL;DR: Macro-prudential policies such as caps on loan to value ratios, limits on credit growth and other balance sheet restrictions, (countercyclical) capital and reserve requirements and surcharges, and Pigouvian levies have become part of the policy paradigm in emerging markets and advanced countries alike as mentioned in this paper.
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Financial Stability Monitoring
TL;DR: In this article, the authors present a forward-looking monitoring program to identify and track the sources of systemic risk over time and to facilitate the development of preemptive policies to promote financial stability.
References
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Bank Runs, Deposit Insurance, and Liquidity
TL;DR: The authors showed that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits, and showed that there are circumstances when government provision of deposit insurance can produce superior contracts.
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An analytic derivation of the cost of deposit insurance and loan guarantees An application of modern option pricing theory
TL;DR: In this paper, a formula is derived to evaluate the cost of issuing a guarantee of a loan by a third party, and the method used is to demonstrate an isomorphic correspondence between loan guarantees and common stock put options and then to use the well developed theory of option pricing to derive the formula.
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Liquidity and Leverage
Tobias Adrian,Hyun Song Shin +1 more
TL;DR: In this article, the authors show that marked-to-market lever-age is strongly procyclical and that changes in aggregate balance sheets for intermediaries forecast changes in risk appetite in financial markets, as measured by the innovations in the VIX index.
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Rating the raters: Are reputation concerns powerful enough to discipline rating agencies?☆☆☆
TL;DR: In this paper, the authors examine the validity of reputation concerns within a formal model: are reputation concerns sufficient to discipline rating agencies? They show that reputation concerns only works when a sufficiency large fraction of the CRA income comes from other sources than rating complex products.
Posted Content
The Leverage Cycle
TL;DR: In this paper, the authors argue that this leverage cycle can be damaging to the economy and should be regulated, and that equilibrium determines leverage, not just interest rates, causing fluctuations in asset prices.