Systemic risk, crises, and macroprudential regulation / Xavier Freixas, Luc Laeven, and Joseʹ-Luis Peydroʹ.

Cambridge, Massachusetts ; London, England : MIT Press, [2015]

HG230.3 .F744 2015

9780262028691 (hardcover ; alk. paper)
0262028697 (hardcover ; alk. paper)

xiii, 472 pages : illustrations ; 24 cm

40025067949
9780262028691

(OCoLC)890377599

The recent financial crisis has shattered all standard approaches to banking regulation. Regulators now recognize that banking regulation cannot be simply based on individual financial institutions' risks. Instead, systemic risk and macroprudential regulation have come to the forefront of the new regulatory paradigm. Yet our knoweldge of these two core aspects of regulation is still limited and fragmented. This book offers a framework for understanding the reasons for the regulatory shift from a microprudential to a macroprudential approach to financial regulation. It defines systemic risk and macroprudential policy, cutting through the generalized confusion as to their meaning; contrasts macroprudential to microprudential approaches; discusses the interaction of macroprudential policywith macroeconomic policy (monetary policy in particular); and describes macroprudential tools and experiences with macroprudential regulation around the world. The book also considers the remaining challenges for establishing effective macroprudential policy and broader issues in regulatory reform. These include the optimal size and structure of the financial system, the multiplicity of regulatory bodies in the United States, the supervision of cross-border financial institutions, and the need for international cooperation on macroprudential policies. -- from dust jacket.

Includes bibliographical references (pages 417-458) and index.

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Gift of Rex Chatterjee, Class of 2011