The Pending Challenges in Global Financial Regulation Reform

Javier Suarez

Margin: The Journal of Applied Economic Research, 2010, vol. 4, issue 2, 241-253

Abstract: The financial crisis which began in the summer of 2007 has its roots in the under-estimation of systemic risk, in turn due to the absence of a macroprudential approach to the design of financial regulation and macroeconomic policies, as well as the excessively optimistic judgment of the originate-to-distribute model of banking. The ongoing process of reform of the global financial system aims to correct these mistakes. After a brief overview of the challenges ahead, this paper focuses on issues regarding the regulatory treatment of liquidity risk, looking at them through the eyes of the liquidity insurance arrangement proposed in Perotti and Suarez (2009).

Keywords: Financial Crisis; Liquidity Risk; Systemic Risk; Financial Regulation; Liquidity Insurance; JEL Classification: E60; JEL Classification: G28 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/097380101000400206 (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:sae:mareco:v:4:y:2010:i:2:p:241-253

DOI: 10.1177/097380101000400206

Access Statistics for this article

More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research
Bibliographic data for series maintained by SAGE Publications ().