Financial Regulation at the Crossroads

Name: Financial Regulation at the Crossroads | Implications for Supervision, Institutional Design and Trade
Brand: Kluwer Law International
Price: 206.99 EUR
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Implications for Supervision, Institutional Design and Trade

Panagiotis Delimatsis Nils Herger(Herausgeber*in)

Kluwer Law International (Verlag)

Erschienen am 1. April 2011

424 Seiten

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Beschreibung

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Inhalt

Intro
Title Page
Copyright
About the Editors
List of Contributors
Summary of Contents
Table of Contents
List of Figures
List of Tables
List of Boxes
Preface
Acknowledgements
List of Abbreviations
Financial Regulation at the Crossroads
I. Financial Regulation and Financial Crises
II. Financial Instability in the Twenty-First Century: The latest Global Financial Crisis
III. The Way Forward
Part I Financial Stability and Banking Regulation
Chapter 1 The Impact of Cross-Border Exposures on Financial Contagion
I. Introduction
A. Fundamentals-Based Contagion
B. Pure Financial Contagion
II. Theoretical Foundations of Financial Contagion
III. Empirical Studies on Financial Contagion
A. Interbank Markets
1. Domestic Interbank Contagion
2. Cross-Border Contagion
B. Equity Prices
IV. Recent Analysis on Cross-Border Contagion
A. Data and Methodology
B. Discussion of Results
V. Conclusion
Chapter 2 In the Quest of Systemic Externalities: A Review of the Literature
I. Introduction
II. Systemic Externalities in the Literature
A. Direct Exposures
B. Liquidation of Assets
1. Inelastic Demand for Assets
2. External Effects Arising Due to Borrowing Constraints
3. External Effects through Institutional Failures
4. External Effects through Agency Problems
5. Other External Effects
C. Common Pool of Liquidity
D. Informational Spillovers and Coordination Problems
E. Spillovers Due to a Wealth Effect
F. Costs that Occur Outside the Financial System
III. Conclusions and Implications for Financial Regulation
Chapter 3 Bank Resolution: A Conceptual Framework
I. Introduction
II. Bank Resolution: Reflecting Banks' Special Character
III. Bank Resolution: A Conceptual Framework
IV. Bank Resolution: Not All Banks Are Equal
V. Bank Resolution: The Cross-Border Dimension
VI. Conclusion
Part II Institutional and State Responses to the Recent Financial Crisis
Chapter 4 Too Big, Too Interconnected and Too International to Resolve? How to Deal with Global Financial Institutions in Crisis
I. Introduction
II. Towards a Functional Approach
A. Identifying Critical Functions
1. Functions versus Institutions
2. Criticality
B. Protecting Critical Functions
1. Reducing Criticality of Functions
a. Reducing Concentration and Interconnectedness
b. Market Share Limits
c. Merger Controls
2. Ensuring the Continuity of Critical Functions
a. Reducing the Probability of Failure
b. Aligning Legal Form and Economic Function
c. Ensuring the Continuity of Critical Functions in a Wind Down
3. Mitigating the Impact of Failure
a. Creating 'Utility-Like' Structures
b. Reducing Spillover through Risk Mitigation Mechanisms
C. Ensuring that National Approaches Are Consistent Across Borders
1. Acknowledge Home and Host Interests
2. Assess Effectiveness and Consistency of Measures
3. International Implementation
III. Conclusion
Chapter 5 Regulating Credit Rating Agencies in the European Union
I. Introduction
II. Credit Rating Agencies
III. European Union Legal Framework: Regulation No. 1060/2009
A. Registration of Union-Based CRAs and Certification of Third-Country CRAs
1. Registration of Union-Based CRAs
2. Endorsement of Third-Country Ratings
3. Certification of Third-Country CRAs
B. Rules of Conduct of Registered CRAs
C. Supervision of Registered CRAs
IV. Towards an Improved European Regulatory Framework for CRAs?
A. Centralized Registration and Supervision
B. Enhanced Transparency
C. Omissions
V. Conclusions
Chapter 6 Bailouts in the Financial Sector: The Compatibility with the EU State Aid Rules
I. Introduction
II. The EC State Aid Regime
A. The Definition of Aid
B. The Concept of Advantage
C. Selectivity
D. Distortion of Competition and Adverse Impact on Trade
E. Compatible Aid
F. The Recent Modernization of State Aid Control
III. Procedural Aspects
A. Examination and Decision
B. The Introduction of Simplified Procedures
IV. The New Substantive Rules
A. The First Wave
B. Basic Principles under the R&R Guidelines
C. The Second Wave
D. The Banking Communication
1. General Principles
2. Avoidance of Undue Distortions of Competition
3. The Recapitalization Communication
E. Controlled Winding Up
F. Impaired Assets
1. The Impaired Assets Communication
G. The Results of the Commission's Approach
H. The Third Wave: The Restructuring Communication
1. Restoring Long-term Viability
2. Own Contribution: Burden-Sharing
3. Limiting Distortions of Competition
4. Remedies and Commitments
5. The Return to Viability
6. Burden Sharing
7. Measures to Limit Distortions of Competition
I. The Fourth Wave: Exit
V. Assessment
VI. Conclusion
Chapter 7 Sovereign Debt Restructuring in the EU: Lessons from the Recent Crisis
I. Introduction
II. The Greek Crisis and the Sovereign Debt Problem
A. The Greek Crisis
B. The Mexican 'Tesobono' Crisis
C. European Monetary Fund
III. Market Impact of Sovereign Debt Shocks
A. EU Bank Stress Tests
B. The European Financial Stability Facility (EFSF)
IV. Reforming Sovereign Debt Restructuring in the EU
A. A Decentralized EU Institutional Approach
1. Collective Action Clauses (CACs)
2. Implementation
B. EU Financial Stability Fund
V. Conclusion
A. Postscript
Part III Myths and Realities: The Role of Regulation and Market Discipline
Chapter 8 Breaking Up Mega-Banks: A New Regulatory Model for the Separation of Commercial Banking from Investment Banking
I. Introduction
II. The Creation of the Too-Big-to-Fail Bank
A. The Emergence of the Mega-Bank Model
B. The Suggested Advantages of Financial Conglomerates
III. Too-Big-to-Fail Banks Are Too Bad for Market Welfare
A. Introductory Remarks
B. 'Too Big to Fail' Banks and Market Discipline
C. Mega-Banks and the Misuse of Financial Innovation
D. Financial System Homogenization: The Impact of 'Too Big to Fail Banks' on Risk Management and Risk Diversification
E. Fiscal Implications and the Impact on Competition: The End of Free Market Economy?
IV. A New Model for the Separation of Consumer and Corporate Lending from Investment Banking
A. Solutions to the Too-Big-to-Fail Problem
B. The General Principles of a Successful Segregation Model
C. The Suggested New Model for Mega-Bank Segregation
D. The Advantages of Segregation
V. Conclusion
Chapter 9 Rethinking Market Discipline in Banking: Lessons from the Financial Crisis
I. Introduction
II. The Concept of Market Discipline
A. Definition
B. Framework
III. Financial Crisis Failures
A. Inadequate Market Signals
B. Breakdowns in the Various Building Blocks
IV. Improving Market Discipline
A. Announced Policy Measures
B. Limitations and the Way Forward
V. Conclusion
Part IV Financial Services Regulation: WTO and Preferential Trade Perspectives
Chapter 10 Trade, Trade Finance, and Financial Crises
I. Introduction and Motivation
II. Payment Methods in Trade Finance
III. Trade Finance and Causes and Consequences of Financial Crises
IV. Regulatory Responses
V. Summary and Conclusion
Chapter 11 The GATS Prudential Carve-Out
I. Introduction
II. The GATS Negotiating History and Subsequent Discussions at the WTO
A. The Uruguay Round Negotiations
B. Post-Uruguay Round Negotiations and Discussions
III. The Prudential Carve-Out
A. The Placement and Scope of the Carve-Out
B. Prudential 'Regulation' or Prudential 'Reasons'?
1. Consumer Protection
2. Financial Integrity and Stability
3. An Exception without Constraints?
IV. Conclusion
Chapter 12 Financial Services in Free Trade Agreements: The Case of Switzerland
I. Trade Disciplines on Trade in Services
II. Switzerland's Objectives and Approach to FTAs
III. The Annex on Financial Services
IV. Specific Commitments and MFN
A. Switzerland's Interests
B. Switzerland's Specific Commitments in FTAs
V. Conclusion and Evaluation
Part V 'New' Issues in the Regulation of Financial Services
Chapter 13 Financial Regulation in the Aftermath of the Global Financial Crisis from a Human Rights Perspective: Microfinance Matters
I. Introduction
II. Fighting Poverty: The Role of States and the Private Sector
III. The Evolution of Microfinance
IV. The Effect of Microfinance on Human Rights
A. Access to Finance as a Human Right?
V. Impact of the Financial Crisis on Microfinance
VI. Way Forward: Managing the Financial Crisis with a Human Face
VII. Conclusion
Chapter 14 Promoting Renewable Energy through Adaptive Prudential Regulation in Financial Services
I. Introduction
II. Impact of the Financial Crisis on the Expansion of Renewables
III. A Taxonomy of REFS
IV. Creating a Flexible Prudential Framework for REFS
A. Justifying the Need for Special Prudential Rules
B. Adaptive Prudential Regulations: The Example of Prudential Requirements in the Supply of Payment Services within the EU
C. A Tentative Framework towards Adaptive Prudential Regulation for REFS
V. The Consistency of Varying Prudential Regulations with GATS Rules
A. The Regulation of Financial Services in the GATS
B. Examining the Proposed Adaptive Regulations against the GATS Rules
1. The Applicability of Article XIV(b) GATS
2. Consistency with the Prudential Carve-Out
VI. Conclusion
Epilogue
Chapter 15 Two Peas in a Pod: Thoughts on the Future Regulation of Global Food and Finance
I. Introduction
II. Role of Global Food and Finance
III. Topics and Tools for Regulation of Global Food and Finance
A. Capital and Soil
B. Liquidity and CAFOs
C. Accounting and Precaution
D. Size and Scale
E. Global versus Local
IV. Conclusion

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