Financial Regulation and Nation State Crisis Management: Evidence from Germany, Ireland and the UK

William Forbes (), Sheila O'Donohoe () and Jörg Prokop ()
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William Forbes: Loughborough University - Business School
Sheila O'Donohoe: Waterford Institute of Technology
Jörg Prokop: University of Oldenburg - Finance and Banking & ZenTra

No 18 / 2013, ZenTra Working Papers in Transnational Studies from ZenTra - Center for Transnational Studies

Abstract: We study the unfolding of the credit crisis until 2008, and the diversity of policy responses in Germany, Ireland, and the UK. We show that although the channels through which these three European states manifested financial distress were different, the crisis evoked similar reactions by regulators and national governments. Our conclusion emphasise the role of state regulatory bodies as a primary source of the “rules of the game” in financial markets, and they support several of the policy measures taken in the aftermath of the credit crisis. In particular, we argue that adverse regulatory incentives at a national level require strengthening regulation at the European level, to avoid national capture and a resulting race to the bottom by national financial regulators.

Keywords: regulation; Europe; banking; financial crisis (search for similar items in EconPapers)
JEL-codes: E44 G01 G18 H11 H12 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013-05, Revised 2013-05
New Economics Papers: this item is included in nep-ban, nep-eec and nep-mac
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2264058 First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zen:wpaper:18

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