1st Edition

Banking Regulation and the Financial Crisis

By Jin Cao Copyright 2012
    236 Pages 65 B/W Illustrations
    by Routledge

    240 Pages 65 B/W Illustrations
    by Routledge

    This book is a review on the economic theories of systemic risks in the financial market and the topics in constructing the macroprudential framework for banking regulation in the future. It explains the reasons why the traditional microprudential regulatory framework missed its target in stabilizing the market and preventing the crisis, and discusses the principles and instruments for designing macroprudential rules.

    Part 1: Introduction  Part 2: Externilities, Network Effects, and Systemic Risks  1. Unstable Banking  2. Financial Network, Interconnectedness, and Contagion  3. Endogenous Exposure to Systemic Liquidity Risks  4. Financial Complexity and Systemic Risk  5. Leverage and Leverage Cycle  6. Micro Fragility and Macro Stability  Part 3: Topics in Macroprodential Regulation  7. From Microprudential to Macroprudential Regulation  8. Liquidity Regulation and the Lender of Last Resort Policy  9. Capital Requirements and Equity Buffer


    Jin Cao is an Advisor at the Research Department of the Financial Stability Wing of Norges Bank, Oslo, Norway.