Proprietary trading: evidence from the crisis
Francesc R. Tous, Puriya Abbassi, Rajkamal Iyer, José-Luis Peydró. What are the consequences of proprietary trading? Banks typically hold and trade a significant amount of securities, and during the...
View ArticleUnintended consequences: specialising in risky mortgages under Basel II
Matteo Benetton, Peter Eckley, Nicola Garbarino, Liam Kirwin and Georgia Latsi. Do financial regulations change bank behaviour? Does this create new risks? Under Basel II, some banks set capital...
View ArticleGuest post: Why regulators should focus on bankers’ incentives
Charles Goodhart Last autumn, Charles Goodhart gave a special lecture at the Bank. In this guest post he argues that regulators should focus more on the incentives of individual decision makers. The...
View ArticleThe Dog and the Boomerang: in defence of regulatory complexity
Joseph Noss and David Murphy For some years, financial regulations have been becoming more complex. This has led some prominent commentators, regulators and regulatory bodies, to set out the case for...
View ArticleInsurance companies: amplifiers or the white knights of financial markets?
Graeme Douglas, Nicholas Vause and Joseph Noss Risky asset prices plummeted following the collapse of Lehman Brothers in 2008. Whilst driven partly by deteriorations in fundamental news, these falls...
View ArticleWill Pay Clawback Tame Damaging Risk-Taking In The City?
Misa Tanaka and John Thanassoulis In the 2007-8 global financial crisis, a number of banks were bailed out by taxpayers while their most senior employees were paid extraordinary bonuses up to that...
View ArticleBitesize: The rise and fall of interest only mortgages
Sachin Galaiya The interest-only product has undergone tremendous evolution, from its mass-market glory days in the run-up to the crisis, to its rebirth as a niche product. However, since reaching a...
View ArticleThe language of rules: textual complexity in banking reforms
Zahid Amadxarif, James Brookes, Nicola Garbarino, Rajan Patel and Eryk Walczak The banking reforms that followed the financial crisis of 2007-08 led to an increase in UK banking regulation from almost...
View ArticleNegotiating nationalisation
Austen Saunders 1 March 2021 was the 75th anniversary of the Bank of England’s nationalisation. While its stock formerly passed into public ownership in 1946, Lord Catto (the Governor) and Hugh Dalton...
View ArticleThe Basel regulatory framework: evolution of its textual complexity
James Brookes, Matthew Everitt and Quynh-Anh Vo The Basel III framework put in place in the aftermath of the Global Financial Crisis 2007–08 consists of a range of regulatory standards, each...
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