Systemic Risk, Crises, and Macroprudential Regulation

By Jose-Luis Peydro, Luc Laeven, Xavier Freixas | Publisher: MIT Press

About the book

A framework for macroprudential regulation that defines systemic risk and macroprudential policy, describes macroprudential tools, and surveys the effectiveness of existing macroprudential regulation.

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 knowledge 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 policy with 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.

Editions of Systemic Risk, Crises, and Macroprudential Regulation

Hardcover
ISBN 9780262028691
Paperback
ISBN 9780262549011
EBook
ISBN 9780262328593
EBook
ISBN 9780262328609
EBook
ISBN 9780262328616

Read an Excerpt

A framework for macroprudential regulation that defines systemic risk and macroprudential policy, describes macroprudential tools, and surveys the effectiveness of existing macroprudential regulation.

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 knowledge 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 policy with 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.

Frequently Asked Questions

What is Systemic Risk, Crises, and Macroprudential Regulation about?

A framework for macroprudential regulation that defines systemic risk and macroprudential policy, describes macroprudential tools, and surveys the effectiveness of existing macroprudential regulation.

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 knowledge 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 policy with 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.

What core themes, tropes, or subjects are explored in Systemic Risk, Crises, and Macroprudential Regulation?

Economics, Finance, Business and Management > Economics > Macroeconomics > Monetary economics

Where can I read a sample of Systemic Risk, Crises, and Macroprudential Regulation?

You can read an official preview of the few pages here https://www.book2look.com/book/9780262028691

Who is/are the Author/s of the book Systemic Risk, Crises, and Macroprudential Regulation?

Jose-Luis Peydro, Luc Laeven, Xavier Freixas

Who is the Publisher of the book Systemic Risk, Crises, and Macroprudential Regulation?

MIT Press

What are the ISBN numbers for the physical and digital editions?

Systemic Risk, Crises, and Macroprudential Regulation is available as hardcover(ISBN 9780262028691) and paperback(ISBN 9780262549011) and ebook(ISBN 9780262328593) and ebook(ISBN 9780262328609) and ebook(ISBN 9780262328616)

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