Theoretical backgrounds of modern bank regulation

Teoretické základy současné bankovní regulace

Petr Pavlík

Český finanční a účetní časopis, 2016, vol. 2016, issue 2, 5-33

Abstract: The article deals with theoretical and practical dimension of the third generation of Basel regulatory standards. The implementation proves more complex than previously supposed. Modern bank regulation theory focus mainly on four areas: factors that lies beyond bank equity pricing, transmission channels of banking crisis on the international level, optimal design of the safety net, well-balanced intensity of regulatory restrictions. Unfortunately, in the real world, bank regulation standards do not often follow the recommendations of economic theory. The rules remain to be subject of policy influence of diverse advocacy groups including banks themselves. The aim of this article is to outline the main ways of actual economic research and the challenges that lie ahead. Special attention is paid to such issues as capital adequacy, moral hazard and tax distorsion of debt financing. The influence of increased capital adequacy requirements, actual income tax policy and deregulation on the stability of commercial banks is being questioned within the study.

Keywords: Bank regulation; Capital adequacy; Moral hazard; Tax distorsion; Basel III; Bankovní regulace; Kapitálová přiměřenost; Morální hazard; Daňová distorze (search for similar items in EconPapers)
JEL-codes: G20 G21 G24 G28 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.18267/j.cfuc.471

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