Successfully implementing major financial stability regulatory reforms: the risk weighting based controversy (Basel v Dodd Frank) and the role of national supervisors

Marianne Ojo

MPRA Paper from University Library of Munich, Germany

Abstract: As well as a consideration of the role contributed by national supervisors in the successful implementation and enforcement of standards, recommendations and regulations, the significance of clear and unambiguous mandates in enhancing communication between micro prudential supervisors (usually national financial supervisors and central banks) and macro prudential bodies which are responsible for writing the laws that are enforced by micro prudential supervisors, will be highlighted in this paper. This will incorporate a discussion on the advantages and disadvantages inherent in clear, explicit mandates – such a discussion necessitating a distinction between financial stability and monetary policy objectives. Furthermore, the role of credit ratings and their significance in influencing investor choices and judgments, will be considered as a means of highlighting how they contribute to the neglect of risks, exposures attributed to certain financial instruments, and ultimately, systemic risks which de stabilize the financial system.

Keywords: European Systemic Risk Board; financial stability; credit ratings; Dodd Frank Act; Basel III; micro prudential supervision; risk weights; European Central Bank; counterparty risks; macro prudential arrangements; central banks; European Supervisory Authorities; monetary policy; risks (search for similar items in EconPapers)
JEL-codes: D0 D8 E02 E3 E5 G01 K2 (search for similar items in EconPapers)
Date: 2011-06-22
New Economics Papers: this item is included in nep-pke, nep-reg and nep-rmg
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31777/1/MPRA_paper_31777.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/69312/1/MPRA_paper_31777.pdf revised version (application/pdf)

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:pra:mprapa:31777

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().