A Macroprudential Perspective on the Regulatory Boundaries of U.S. Financial Assets

David Arseneau, Grace Brang, Matthew Darst, Jacob M. M. Faber, David E. Rappoport and Alexandros Vardoulakis
Additional contact information
David E. Rappoport: https://www.federalreserve.gov/econres/david-e-rappoport.htm
Alexandros Vardoulakis: https://www.federalreserve.gov/econres/alexandros-vardoulakis.htm

No 2022-002, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: This paper uses data from the Financial Accounts of the United States to map out the regulatory boundaries of assets held by U.S. financial institutions from a macroprudential perspective. We provide a quantitative measure of the regulatory perimeter—the boundary between the part of the financial sector that is subject to some form of prudential regulatory oversight and that which is not—and show how it has evolved over the past forty years. Additionally, we measure the boundaries between different regulatory agencies and financial institutions that operate within the regulatory perimeter and illustrate how these boundaries potentially become blurred in the face of regulatory overlap. Quantifying the regulatory perimeter and the boundaries for macroprudential regulators within the perimeter is informative for assessing financial stability risks over the credit cycle.

Keywords: Regulation; Regulatory reach; Boundary problem; Financial institutions (search for similar items in EconPapers)
JEL-codes: E58 G18 G28 (search for similar items in EconPapers)
Pages: 26 p.
Date: 2022-01-14
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fdg, nep-mac and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.federalreserve.gov/econres/feds/files/2022002pap.pdf (application/pdf)

Related works:
Journal Article: A Macroprudential Perspective on the Regulatory Boundaries of US Financial Assets (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2022-02

DOI: 10.17016/FEDS.2022.002

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