Special Issue "The Future of Banking Regulation and Financial Stability"
A special issue of International Journal of Financial Studies (ISSN 2227-7072).
Deadline for manuscript submissions: closed (30 November 2014)
The recent global financial crisis has brought to the fore several issues pertaining to regulation, supervision and the interactions of all players in the markets, including national governments. Moreover, the response to the crisis has reignited old policy debates, albeit in a different context – that of prudential regulation/supervision and financial fragility.
Indicatively, the ‘failure’ of quantitative risk-assessment models to predict the extensive fragility in the period leading up to the crisis has led to the adoption (in Basel III) of simpler quantitative rules and to the strengthening of regulatory discretion (in the form, say, of counter-cyclical buffers). What lessons might be drawn from the policy debates of the late 1970s on ‘Rules vs. Discretion’?
Also, the rapid metastasis of risks, say, from liquidity to credit/asset via the forced sales of assets and the deterioration of overall economic conditions, has raised the issue of whether simple and transparent rules, which help stabilize expectations in cases of fragility, are preferable to complicated rules. Is ‘fine-tuning’ in risk management, as that implied by complicated quantitative rules about capital adequacy, liquidity and operational risk – among others, feasible? Desirable? And under what conditions pertaining to the economic environment and the institutional and legal infrastructure?
Last but not least, the huge fiscal burden, from bank recapitalization and the recession caused by the crisis, raises the issue of whether supervision can (or should) be independent from fiscal policy. What lessons might be drawn from the extensive literature on central bank independence?
- Interaction of risks, regulations and incentives: Does Basel III go far enough to address perverse incentives and the pertinent negative externalities?
- Institutional and legal infrastructure needed for Basel III
- Simple rules vs. Complicated rules: ‘Fine-tuning’ in a turbulent economic environment
- Feedback loops between regulation/supervision and banking risks
- Strict rules (no discretion) and lenient application vs. Lenient rules (with discretion) and strict application
- Rules vs. Discretion and the ‘Time-inconsistency Problem’
- Micro vs. Macro prudential regulation: Which is best, in normal times? in turbulent times?
- Financial fragility: Treating the symptoms (focusing on resolution regimes) or the disease (focusing on prevention)?
- Basel III and Banking Union in the EU
- Lessons from past crises and from the theoretical literature on banking crises.
Prof. Dr. Angelos A. Antzoulatos
Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. Papers will be published continuously (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.
Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are refereed through a peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. International Journal of Financial Studies is an international peer-reviewed Open Access quarterly journal published by MDPI.
Please visit the Instructions for Authors page before submitting a manuscript. For the first couple of issues the Article Processing Charge (APC) will be waived for well-prepared manuscripts. English correction and/or formatting fees of 250 CHF (Swiss Francs) will be charged in certain cases for those articles accepted for publication that require extensive additional formatting and/or English corrections.
- Basel III
- rules vs. discretion
- time inconsistency problem
- supervision and economic policy coordination
- micro prudential regulation
- macro prudential regulation
- financial fragility
- european banking union