scholarly journals The Dodd-Frank Act and Basel III: Intentions, Unintended Consequences, and Lessons for Emerging Markets

2012 ◽  
Author(s):  
Viral V. Acharya
Keyword(s):  
Emerging Markets ◽  
Unintended Consequences ◽  
Basel Iii

scholarly journals Liquidity regulations and bank behavior: An emerging markets perspective

2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 194-211
Author(s):  
Tafirei Mashamba
Keyword(s):  
Emerging Markets ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Emerging Market Economies ◽  
Basel Iii ◽  
Market Economies ◽  
Coverage Ratio ◽  
The Impact

The 2007 to 2009 global financial crisis significantly affected the funding structures of banks, especially internationally active ones (Gambacorta, Schiaffi, & Van Rixtel, 2017). This paper examines the impact of liquidity regulations, in particular, the liquidity coverage ratio (LCR), on funding structures of commercial banks operating in emerging markets over the period 2011 to 2016. Similar to Behn, Daminato, and Salleo (2019) who developed a dynamic partial equilibrium model to examine capital and liquidity adjustments, this paper develops three dynamic error component adjustment models and estimates them using the two-step system generalized method of moments (GMM) estimator to analyze funding adjustments adopted by banks in emerging markets in response to the LCR requirement. The results revealed that banks in emerging markets responded to binding liquidity regulations by increasing deposit, equity as well as long-term funding. In terms of the magnitude of response, deposit funding was found to be more responsive to the LCR rule while the elasticity of equity and long-term funding to the LCR specification was found to be weak. The weak response of equity and long-term funding to liquidity standards was attributed to low levels of capital market development in emerging markets (Bonner, van Lelyveld, & Zymek, 2015). By and large, the results suggest that Basel III liquidity regulations have been effective in persuading banks in emerging market economies to fund their business activities with stable funding instruments. Based on this evidence, the study supports the adoption of Basel III liquidity regulations in emerging markets. Moreover, policymakers in emerging market economies should monitor competition for retail deposits to safeguard the benefits of the LCR rule and pay more attention to developing capital markets.

IMF Working Paper Monetary and Capital Markets Department Possible Unintended Consequences of Basel III and Solvency II

2013 ◽  
Vol 19 (2) ◽  
pp. 273-325 ◽  
Author(s):  
Ahmed Al-Darwish ◽  
Michael Hafeman ◽  
Gregorio Impavido ◽  
Malcolm Kemp ◽  
Padraic O'Malley
Keyword(s):  
Financial Institutions ◽  
Cost Of Capital ◽  
Solvency Ii ◽  
Unintended Consequences ◽  
Basel Iii ◽  
Financial Deepening ◽  
Working Paper ◽  
Capital Funding ◽  
The Stability ◽  
The Imf

AbstractThis Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.In today's financial system, complex financial institutions are connected through an opaque network of financial exposures. These connections contribute to financial deepening and greater savings allocation efficiency, but are also unstable channels of contagion. Basel III and Solvency II should improve the stability of these connections, but could have unintended consequences for cost of capital, funding patterns, interconnectedness, and risk migration.

scholarly journals Possible Unintended Consequences of Basel III and Solvency II

2011 ◽  
Author(s):  
Gregorio Impavido ◽  
Ahmed I. Al-Darwish ◽  
Michael Hafeman ◽  
Malcolm Kemp ◽  
Padraic O'Malley
Keyword(s):  
Solvency Ii ◽  
Unintended Consequences ◽  
Basel Iii

scholarly journals BANKING FLOWS AND FINANCIAL CRISIS FINANCIAL INTERCONNECTEDNESS AND BASEL III EFFECTS

2012 ◽  
Vol 03 (01) ◽  
pp. 1240001 ◽  
Author(s):  
Swati R. Ghosh ◽  
Naotaka Sugawara ◽  
Juan Zalduendo
Keyword(s):  
Financial Crisis ◽  
Emerging Markets ◽  
Structural Changes ◽  
Global Financial Crisis ◽  
Stable Region ◽  
Basel Iii ◽  
Advanced Economies ◽  
Financial Interconnectedness ◽  
The Global Financial Crisis ◽  
Capital Regulations

This paper examines the factors that determine banking flows from advanced economies to emerging markets. In addition to the usual determinants of capital flows in terms of global push and local pull factors, we examine the role of bilateral factors, such as growth differentials and economic size, as well as contagion factors and measures of the depth in financial interconnectedness between lenders and borrowers. We find profound differences across regions. In particular, in spite of the severe impact of the global financial crisis, emerging Europe stands out as a more stable region. Assuming that the determinants of banking flows remain unchanged in the presence of structural changes, we use these results to explore the short-term implications of Basel III capital regulations on banking flows to emerging markets.

Possible unintended consequences of Basel III and Solvency II ‐ Abstract of the Edinburgh discussion

2013 ◽  
Vol 19 (2) ◽  
pp. 326-340
Author(s):  
Malcolm Kemp
Keyword(s):  
Solvency Ii ◽  
Unintended Consequences ◽  
Basel Iii ◽  
Publication Type

This abstract relates to the following paper:Al-DarwishA., HafemanM., ImpavidoG., KempM. and O'MalleyP.Possible Unintended Consequences of Basel III and Solvency II.British Actuarial Journal, doi:10.1017/S1357321713000391

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