scholarly journals Optimal Regulation of Financial Intermediaries

2019 ◽  
Vol 109 (1) ◽  
pp. 271-313 ◽  
Author(s):  
Sebastian Di Tella
Keyword(s):  
Capital Markets ◽  
Asset Prices ◽  
Financial Regulation ◽  
Optimal Allocation ◽  
Financial Intermediaries ◽  
Sufficient Statistic ◽  
Market Data ◽  
Optimal Regulation ◽  
Capital Assets ◽  
Regulation Policy

I characterize the optimal financial regulation policy in an economy where financial intermediaries trade capital assets on behalf of households, but must retain an equity stake to align incentives. Financial regulation is necessary because intermediaries cannot be excluded from privately trading in capital markets. They don’t internalize that high asset prices force everyone to bear more risk. The socially optimal allocation can be implemented with a tax on asset holdings. I derive a sufficient statistic for the externality and use market data on leverage and volatility of intermediaries’ equity to measure it. (JEL D82, G01, G12, G20, G31, H25)

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals Vom Lohnarbeiter zum Shareholder?

2001 ◽  
Vol 31 (122) ◽  
pp. 103-122 ◽  
Author(s):  
Jan Priewe
Keyword(s):  
Data Base ◽  
Old Age ◽  
Asset Prices ◽  
Profit Sharing ◽  
Value Orientation ◽  
Equal Distribution ◽  
Share Capital ◽  
Wealth Concentration ◽  
Capital Assets ◽  
The Impact

The paper investigates the impact of some features of the 90s in Germany: shareholder-value orientation and changes in the distribution of share capital, booming asset prices, profit-sharing schemes including option plans, increased capital funded old-age provisions. Two propositions are discussed and, finally, denied: Due to these trends there might emerge a tendency towards a more equal distribution of capital stocks, and a relevant portion of employees might turn out as shareholders with considerable non-wage income. However, despite severe shortcomings in the data base a wave of further wealth concentration can be observed, and the workers´ share in capital assets has remained insignificant, apart from a small but increasing stratum of middle and high income employees.

Investor Protection in the Capital Markets Union

2018 ◽  
Author(s):  
Veerle Colaert
Keyword(s):  
Capital Markets ◽  
Financial Regulation ◽  
General Trend ◽  
Investor Protection ◽  
Information Service ◽  
Building Blocks ◽  
Playing Field ◽  
Product Regulation ◽  
Capital Markets Union ◽  
Protection Legislation

Recent years have witnessed a tidal wave of new EU financial regulation in general and investor protection legislation in particular. The Capital Markets Union project has added a number of further initiatives. This chapter attempts to bring some order in the multitude of rules, by sorting them into three main building blocks: information, service quality requirements (conduct of business rules), and product regulation. A general trend among the three building blocks is a more cross-sectoral approach to investor protection, levelling the playing field between banking, investment, insurance, and personal pension products and services. This trend towards a more horizontal approach, although not perfect, is laudable. A challenge for EU financial regulation is to decide how far this trend should go.

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