Post-crisis international financial regulatory reforms: a primer

Claudio Borio, Marc Farag and Nikola Tarashev ()

No 859, BIS Working Papers from Bank for International Settlements

Abstract: This paper reviews post-crisis financial regulatory reforms, examines how they fit together and identifies open issues. Specifically, it takes stock of the salient new features of bank and CCP international standards within a unified analytical framework. The key notion in this framework is "shock-absorbing capacity", which is higher when (i) there is less exposure to the losses that a shock generates and (ii) there are more resources to absorb such losses. How do the reforms strengthen this capacity, individually and as a package? Which areas merit further attention? We argue that, given the political economy pressures and technical obstacles that the reforms have faced, as well as the inherent uncertainty about the reforms' effects, it is important to maintain a conservative regulatory approach. A higher cost of balance sheet space is a healthy side effect of the backstops underpinning such an approach.

Keywords: bank regulation; CCPs; asset managers; macroprudential (search for similar items in EconPapers)
JEL-codes: G21 G23 G28 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2020-04
New Economics Papers: this item is included in nep-cfn and nep-fmk
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bis.org/publ/work859.pdf Full PDF document (application/pdf)
https://www.bis.org/publ/work859.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:859

Access Statistics for this paper

More papers in BIS Working Papers from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Martin Fessler ().