scholarly journals Financial Crisis and New Dimensions of Liquidity Risk: Rethinking Prudential Regulation and Supervision

2009 ◽  
Author(s):  
Elisabetta Gualandri ◽  
Andrea Landi ◽  
Valeria Venturelli
Keyword(s):  
Financial Crisis ◽  
Liquidity Risk ◽  
Prudential Regulation ◽  
Regulation And Supervision

Central Banking and Prudential Regulation

2019 ◽  
pp. 456-481
Author(s):  
Kevin Davis
Keyword(s):  
Financial Crisis ◽  
Risk Taking ◽  
Central Banking ◽  
Regulatory Activity ◽  
Regulatory Requirements ◽  
Prudential Regulation ◽  
Basel Accord ◽  
Financial Deregulation ◽  
Regulation And Supervision ◽  
Oriented Approach

The financial deregulation in major Western economies in the 1970s and 1980s freed banks from many preexisting constraints, facilitating competition and greater risk-taking and eventually leading to prudential regulation and supervision as a specific, well-defined area of regulatory activity. It was codified in the Basel Accord, which allowed banks considerable discretion in how they met broadly specified regulatory requirements and was focused primarily on individual bank safety. The financial crisis of 2007–2008 highlighted numerous weaknesses in the design and application of this approach. The previous micro-orientation has been complemented by a macroprudential focus, suggesting a strengthened case for central bank involvement in prudential regulation. Microprudential regulation has been strengthened, with changes reflecting less confidence in the previous market-oriented approach and more reliance on direct controls. The wheel has turned such that prederegulation approaches and attitudes have been incorporated into the postcrisis design and approach of prudential regulation.

3 Trading Venues

2020 ◽  
Author(s):  
Liebi Martin ◽  
Markham Jerry W ◽  
Brown-Hruska Sharon ◽  
De Carvalho Robalo Pedro ◽  
Meakin Hannah ◽  
...  
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Technological Development ◽  
Regulated Markets ◽  
Regulation And Supervision ◽  
Increased Risk ◽  
Commodity Derivatives ◽  
Derivatives Markets

This chapter examines trading venues. The communiqué of the G20 finance ministers and central bank governors of 15 April 2011 states that participants in commodity derivatives markets should be subject to appropriate regulation and supervision. Therefore, certain exemptions from Directive 2004/39/EC (MiFID) are to be modified. These amendments particularly affect clearing houses, trade repositories, and trading venues, and reflect the increased risk and technological development since the last financial crisis. In Europe, MiFID II both defines the types of commodity derivatives that are regulated and the types of activity undertaken in relation to them that requires authorization. It also defines the types of trading venues that create the European trading landscape. As of January 2018, there are three types of trading venues in Europe: regulated markets, multilateral trading facilities, and organized trading facilities. While there are some important distinctions between them, it will be noted that many of the same requirements apply to each of them.

Part II The Financial Crisis of 2007–2011, 9 The Initial Response to the Financial Crisis by the EU and Elsewhere

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Financial Crisis ◽  
European Commission ◽  
Financial Stability ◽  
Financial Regulation ◽  
Initial Response ◽  
Banking Supervision ◽  
Basel Committee ◽  
Regulation And Supervision ◽  
European Financial Regulation ◽  
The Eu

This chapter discusses the various laws, regulations, and comparable measures that were passed or proposed in response to the financial crisis in the EU and elsewhere. It covers the responses of the de Larosière Report, G20, the Basel Committee on Banking Supervision, and the Financial Stability Board. The de Larosière Report, for instance, was commissioned by the President of the European Commission in October 2008 and delivered on 25 February 2009. The report sought ‘to give advice on the future of European financial regulation and supervision’ and has formed the basis of many of the responses to the financial crisis at EU level. The G20 issued a comprehensive communiqué on the crisis at the London ‘Summit’ of 2 April 2009, covering a number of macro-economic and other ‘architectural’ issues.

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