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Social Value of the Financial Sector : Too Big to Fail or Just Too Big?.

By: Contributor(s): Series: World Scientific Studies in International Economics SerPublisher: Singapore : World Scientific Publishing Co Pte Ltd, 2014Copyright date: ©2013Description: 1 online resource (536 pages)Content type:
  • text
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9789814520294
Subject(s): Genre/Form: Additional physical formats: Print version:: Social Value of the Financial Sector : Too Big to Fail or Just Too Big?DDC classification:
  • 332.1
LOC classification:
  • HG173.S63 2014eb
Online resources:
Contents:
Intro -- Contents -- Preface -- Acknowledgments -- Part I. Keynote Addresses -- Chapter 1. A Ferment of Regulatory Proposals Charles A. E. Goodhart -- A Simpler Approach? -- How to Get from Here to There -- A More Structural Approach -- Chapter 2. Progress and Priorities for Financial Reform Mary John Miller -- Introduction -- A Stronger Financial System: Public and Private Reforms -- Looking Ahead -- Why It Matters -- Part II. Description and Measurement of the Financial System -- Chapter 3. What Is Meaningful Banking Reform,Why Is It So Necessary…and So Unlikely? Charles W. Calomiris -- The Problem -- How and Why Regulatory Discipline Fails -- Some Specific Ideas -- References -- Chapter 4. The Great Leveraging Alan M. Taylor -- Fact 1. Crises: Almost Forgotten, Now They're Back -- Fact 2. Consequences: Crises are Depressing and Deflationary -- Fact 3. Extreme Leverage: Size of the Banking Sector Is Unprecedented -- Fact 4. Global Asymmetry: EMs Buy Insurance, DMs Sell It -- Fact 5. Savings Glut: Short-Run Panic versus Long-Run Demography -- Summing Up the Facts:What Is Happening? -- Lesson 1: Past Private Credit Growth Does Contain Valuable Predictive Information About Likelihood of a Crisis -- Lesson 2: As Symptoms of Financial Crises, External Imbalances Are a Distraction, and so Are Public Debts -- Lesson 3: After a Credit Boom, Expect a More Painful "Normal Recession" as Well as a More Painful "Financial Crisis Recession" -- Lesson 4: In a Financial Crisis with Large Run-Up in Private Sector Credit, Mark Down Growth/Inflation More -- Lesson 5: In a Financial Crisis with Large Public Debt, and Large Run-up in Private Sector Credit Mark Down your Forecast Even More -- Summing Up:What Next for Macroeconomics and Policy? -- References.
Chapter 5. Finance and Economic Development in a Model with Credit Rationing Jean-Louis Arcand, Enrico Berkes, and Ugo Panizza -- Introduction -- The Economics 101 Model -- The Credit Rationing Model -- Social Planner -- Decentralized Equilibrium -- Conclusions -- References -- Appendix A -- Chapter 6. Too Much Finance, Too Much Credit? Comments on Papers by Calomiris, Arcand-Berkes-Panizza, and Taylor Eugene N. White -- References -- Part III. Social Benefits and Costs of the Current Financial System -- Chapter 7. Bank Regulatory Reforms and Racial Wage Discrimination Ross Levine, Alexey Levkov, and Yona Rubinstein -- Introduction -- Bank Deregulation and Competition in Nonfinancial Industries -- Blacks' Relative Wages and the Racial Bias Index -- Results -- Prerequisites -- The Impact of Deregulation on Blacks' Relative Wages -- Extensions -- Conclusions -- References -- Chapter 8. Finance: Economic Lifeblood or Toxin? Marco Pagano -- Introduction -- A Mixed Record: The Literature -- The Bright Side -- The Dark Side -- Shadow banks and securitization -- Low Interest Rates and the Fall in Credit Standards -- Systemic bailouts, excessive lending, and systemic risk -- The Nonlinear Effect of Financial Development: Some Evidence -- Nonlinear Effect on Long-Run Growth -- Nonlinear Effects on Bank Solvency and Systemic Stability -- Why Didn't Regulation Prevent Financial Hypertrophy? -- "Sins of Omission:" Neglecting Financial Innovation and Changing Incentives -- "Sins of Commission:" The Role of Politics -- References -- Chapter 9. Finance: Is Bigger Badder? Gerard Caprio, Jr. -- References -- Part IV. Financial Industry Innovation -- Chapter 10. A Proposal for the Resolution of Systemically Important Assets and Liabilities: The Case of the Repo Market Viral V. Acharya and T. Sabri Öncü -- Introduction.
The Dodd-Frank ResolutionMechanism for Nonbank SIFIs -- The US Repo Market -- Evolution of the US Repo Market -- Repo Market and the Crisis of 2007-2009 -- A Case for Reforming the Repo Market -- Proposal for a Repo Resolution Authority -- A Historical Precedent: The Glass Proposal -- Concluding Remarks -- References -- Chapter 11. Reexamining Financial Innovation after the Global Financial Crisis W. Scott Frame and Lawrence J. White -- Introduction -- Background1 -- Three Usual Suspects -- Credit Default Swaps -- Structured Investment Vehicles -- Securitization -- Conclusions -- References -- Chapter 12. Financial Innovation and Shadow Banking Luc Laeven -- References -- Part V. Effects of Regulation, the Safety Net and Other Government Guarantees -- Chapter 13. Evolving Intermediation Nicola Cetorelli -- From Bank-Based to Securitization-Based Intermediation -- A Role-Based Approach to Understanding Bank Evolution -- Organizational Adaptation: An Entity-Based View -- Results -- Summary and Normative Suggestions -- References -- Chapter 14. The Socially Optimal Level of Capital Requirements: A View from Two Papers Javier Suarez -- Introduction -- The Procyclical Effects of Bank Capital Regulation -- A MacroeconomicModel of Endogenous Systemic Risk-Taking -- Conclusions -- References -- Chapter 15. Effects of Regulation, the Safety Net, and Other Government Guarantees Mathias Dewatripont -- References -- Part VI. Finance and Economic Activity: Variations across Emerging and Developed Markets -- Chapter 16. Legal and Alternative Institutions in Finance and Commerce Franklin Allen and Jun "QJ" Qian -- Introduction -- Examples of Alternative Mechanisms and Problems with the Legal System -- Alternative Mechanisms in China and India -- Alternative Mechanisms Can Work in Complicated Transactions -- Intellectual Property Rights and Innovations.
Limited Capacity of the Legislature -- Legal Institutions versus Alternative Mechanisms: Comparisons and Policy Implications -- Concluding Remarks -- References -- Chapter 17. Finance in the Tropics: Understanding Structural Gaps and Policy Challenges Thorsten Beck -- Introduction -- The Financial Possibility Frontier -- Taxonomy of Financial Sector Challenges -- The Role of Competition in Financial Deepening -- The Role of Financial Innovation -- Globalization -- What Role for Government? -- Beyond Policies-All Financial Sector Policy is Local -- References -- Chapter 18. Foreign Banks: Access to Finance and Financial Stability Neeltje van Horen -- Introduction -- Foreign bank presence -- Impact of Foreign Banks on Domestic Credit -- Foreign Banks and Financial Stability -- Final Remarks -- References -- Chapter 19. Institutions, Finance, and Economic Activity: Views and Agenda Elias Papaioannou -- Introduction -- Summary -- Structure -- Legal Institutions, Finance, and Development -- Finance and Economic Performance -- Law and Finance -- The Issues -- Econometric Considerations-Identification -- Theoretical-Channels -- Future Research: Understanding Heterogeneity and the Role of Other-than-Law Factors -- Concluding Remarks -- References -- Part VII. Break Up the Big Banks? -- Chapter 20. Breaking (Banks) Up Is Hard to Do: New Perspective on Too Big to Fail James R. Barth and Apanard (Penny) Prabha -- Just How Big are the World's Biggest Banks? -- What Is a Bank? -- What Should Be Done to Resolve the Too-Big-to-Fail Problem? -- Summary and Conclusion -- References -- Chapter 21. Restructuring the Banking System to Improve Safety and Soundness Thomas M. Hoenig and Charles S. Morris -- Executive Summary -- Proposal -- Why Restricting Activities Is the Solution -- Evolution of Current Financial Structure -- Regulation -- Increased Competition.
Shadow Banking -- Expansion of Bank Activities -- Implications for Financial Structure, Stability, and Risk -- Changes in Financial Structure and Stability -- New Activities Make It More Difficult to Manage and Monitor Risk -- Proposal to Reduce Costs and Risks to the Safety Net and Financial System -- Restricting Activities of Banking Organizations -- Reforming the Shadow Banking System -- References -- Chapter 22. Ending Too Big to Fail: A Proposal for Reform Richard W. Fisher and Harvey Rosenblum -- Costs of the Financial Crisis -- Earlier Statements on the Need to End TBTF -- Defining and Reducing the Impact of TBTF -- The Role of Market and Regulatory Discipline -- A Proposal for Reform -- It's Not Just Size-Complexity Matters Too -- Concluding Comments -- References -- Part VIII. Where to From Here? The Implications for Financial Regulatory Policy -- Chapter 23. Where to from Here? Implementation, Implementation, Implementation Claudio Borio -- Introduction -- Recognition of the Systemic Dimension of Regulation and Supervision -- Basel III and Systemic Resilience -- International Coordination -- Conclusion -- References -- Chapter 24. Complexity in Financial Regulation Andrew G. Haldane and Vasileios Madouros -- Complexity, Comparability, and Credibility -- Can Less Be More in Finance? -- Leverage versus Risk-Based Capital -- Modelling the Risk of Small Bank Default -- Modeling Financial Risk -- Public Policy Implications -- Conclusion -- References -- Chapter 25. Financial Reform: On the Right Road, at the Right Pace? Thomas F. Huertas -- References -- Chapter 26. Banking Regulation and Supervision in the Next 10 Years and Their Unintended Consequences Danièle Nouy -- Introduction -- Unintended Consequences of New Regulation -- Recapitalization, Deleveraging, and Lending Activity.
Concerns Associated with the Implementation of Basel III Regulation.
Summary: As a result of the recent financial crisis, there has been significant public debate on the role of the financial sector in bringing about the "Great Depression." More generally, there has been debate about whether the current industry structure has enhanced social welfare or served a detrimental role. This book is a collection of papers presented at the conference held at the Federal Reserve Bank of Chicago, in November 2012 that examined the social value of the financial sector as currently structured. Issues evaluated include what are the perceived benefits and costs of the current financial system" How valuable have industry innovations been for society" Should regulation be used to "move" the industry in a direction thought to be more valuable for society" Should "big" banks be broken up" What are the welfare implications of the current industry structure" In the book, leading industry scholars debate these issues with a goal of influencing public policy toward the industry.
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Ebrary Ebrary Afghanistan Available EBKAF00087467
Ebrary Ebrary Algeria Available
Ebrary Ebrary Cyprus Available
Ebrary Ebrary Egypt Available
Ebrary Ebrary Libya Available
Ebrary Ebrary Morocco Available
Ebrary Ebrary Nepal Available EBKNP00087467
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Ebrary Ebrary Tunisia Available
Total holds: 0

Intro -- Contents -- Preface -- Acknowledgments -- Part I. Keynote Addresses -- Chapter 1. A Ferment of Regulatory Proposals Charles A. E. Goodhart -- A Simpler Approach? -- How to Get from Here to There -- A More Structural Approach -- Chapter 2. Progress and Priorities for Financial Reform Mary John Miller -- Introduction -- A Stronger Financial System: Public and Private Reforms -- Looking Ahead -- Why It Matters -- Part II. Description and Measurement of the Financial System -- Chapter 3. What Is Meaningful Banking Reform,Why Is It So Necessary…and So Unlikely? Charles W. Calomiris -- The Problem -- How and Why Regulatory Discipline Fails -- Some Specific Ideas -- References -- Chapter 4. The Great Leveraging Alan M. Taylor -- Fact 1. Crises: Almost Forgotten, Now They're Back -- Fact 2. Consequences: Crises are Depressing and Deflationary -- Fact 3. Extreme Leverage: Size of the Banking Sector Is Unprecedented -- Fact 4. Global Asymmetry: EMs Buy Insurance, DMs Sell It -- Fact 5. Savings Glut: Short-Run Panic versus Long-Run Demography -- Summing Up the Facts:What Is Happening? -- Lesson 1: Past Private Credit Growth Does Contain Valuable Predictive Information About Likelihood of a Crisis -- Lesson 2: As Symptoms of Financial Crises, External Imbalances Are a Distraction, and so Are Public Debts -- Lesson 3: After a Credit Boom, Expect a More Painful "Normal Recession" as Well as a More Painful "Financial Crisis Recession" -- Lesson 4: In a Financial Crisis with Large Run-Up in Private Sector Credit, Mark Down Growth/Inflation More -- Lesson 5: In a Financial Crisis with Large Public Debt, and Large Run-up in Private Sector Credit Mark Down your Forecast Even More -- Summing Up:What Next for Macroeconomics and Policy? -- References.

Chapter 5. Finance and Economic Development in a Model with Credit Rationing Jean-Louis Arcand, Enrico Berkes, and Ugo Panizza -- Introduction -- The Economics 101 Model -- The Credit Rationing Model -- Social Planner -- Decentralized Equilibrium -- Conclusions -- References -- Appendix A -- Chapter 6. Too Much Finance, Too Much Credit? Comments on Papers by Calomiris, Arcand-Berkes-Panizza, and Taylor Eugene N. White -- References -- Part III. Social Benefits and Costs of the Current Financial System -- Chapter 7. Bank Regulatory Reforms and Racial Wage Discrimination Ross Levine, Alexey Levkov, and Yona Rubinstein -- Introduction -- Bank Deregulation and Competition in Nonfinancial Industries -- Blacks' Relative Wages and the Racial Bias Index -- Results -- Prerequisites -- The Impact of Deregulation on Blacks' Relative Wages -- Extensions -- Conclusions -- References -- Chapter 8. Finance: Economic Lifeblood or Toxin? Marco Pagano -- Introduction -- A Mixed Record: The Literature -- The Bright Side -- The Dark Side -- Shadow banks and securitization -- Low Interest Rates and the Fall in Credit Standards -- Systemic bailouts, excessive lending, and systemic risk -- The Nonlinear Effect of Financial Development: Some Evidence -- Nonlinear Effect on Long-Run Growth -- Nonlinear Effects on Bank Solvency and Systemic Stability -- Why Didn't Regulation Prevent Financial Hypertrophy? -- "Sins of Omission:" Neglecting Financial Innovation and Changing Incentives -- "Sins of Commission:" The Role of Politics -- References -- Chapter 9. Finance: Is Bigger Badder? Gerard Caprio, Jr. -- References -- Part IV. Financial Industry Innovation -- Chapter 10. A Proposal for the Resolution of Systemically Important Assets and Liabilities: The Case of the Repo Market Viral V. Acharya and T. Sabri Öncü -- Introduction.

The Dodd-Frank ResolutionMechanism for Nonbank SIFIs -- The US Repo Market -- Evolution of the US Repo Market -- Repo Market and the Crisis of 2007-2009 -- A Case for Reforming the Repo Market -- Proposal for a Repo Resolution Authority -- A Historical Precedent: The Glass Proposal -- Concluding Remarks -- References -- Chapter 11. Reexamining Financial Innovation after the Global Financial Crisis W. Scott Frame and Lawrence J. White -- Introduction -- Background1 -- Three Usual Suspects -- Credit Default Swaps -- Structured Investment Vehicles -- Securitization -- Conclusions -- References -- Chapter 12. Financial Innovation and Shadow Banking Luc Laeven -- References -- Part V. Effects of Regulation, the Safety Net and Other Government Guarantees -- Chapter 13. Evolving Intermediation Nicola Cetorelli -- From Bank-Based to Securitization-Based Intermediation -- A Role-Based Approach to Understanding Bank Evolution -- Organizational Adaptation: An Entity-Based View -- Results -- Summary and Normative Suggestions -- References -- Chapter 14. The Socially Optimal Level of Capital Requirements: A View from Two Papers Javier Suarez -- Introduction -- The Procyclical Effects of Bank Capital Regulation -- A MacroeconomicModel of Endogenous Systemic Risk-Taking -- Conclusions -- References -- Chapter 15. Effects of Regulation, the Safety Net, and Other Government Guarantees Mathias Dewatripont -- References -- Part VI. Finance and Economic Activity: Variations across Emerging and Developed Markets -- Chapter 16. Legal and Alternative Institutions in Finance and Commerce Franklin Allen and Jun "QJ" Qian -- Introduction -- Examples of Alternative Mechanisms and Problems with the Legal System -- Alternative Mechanisms in China and India -- Alternative Mechanisms Can Work in Complicated Transactions -- Intellectual Property Rights and Innovations.

Limited Capacity of the Legislature -- Legal Institutions versus Alternative Mechanisms: Comparisons and Policy Implications -- Concluding Remarks -- References -- Chapter 17. Finance in the Tropics: Understanding Structural Gaps and Policy Challenges Thorsten Beck -- Introduction -- The Financial Possibility Frontier -- Taxonomy of Financial Sector Challenges -- The Role of Competition in Financial Deepening -- The Role of Financial Innovation -- Globalization -- What Role for Government? -- Beyond Policies-All Financial Sector Policy is Local -- References -- Chapter 18. Foreign Banks: Access to Finance and Financial Stability Neeltje van Horen -- Introduction -- Foreign bank presence -- Impact of Foreign Banks on Domestic Credit -- Foreign Banks and Financial Stability -- Final Remarks -- References -- Chapter 19. Institutions, Finance, and Economic Activity: Views and Agenda Elias Papaioannou -- Introduction -- Summary -- Structure -- Legal Institutions, Finance, and Development -- Finance and Economic Performance -- Law and Finance -- The Issues -- Econometric Considerations-Identification -- Theoretical-Channels -- Future Research: Understanding Heterogeneity and the Role of Other-than-Law Factors -- Concluding Remarks -- References -- Part VII. Break Up the Big Banks? -- Chapter 20. Breaking (Banks) Up Is Hard to Do: New Perspective on Too Big to Fail James R. Barth and Apanard (Penny) Prabha -- Just How Big are the World's Biggest Banks? -- What Is a Bank? -- What Should Be Done to Resolve the Too-Big-to-Fail Problem? -- Summary and Conclusion -- References -- Chapter 21. Restructuring the Banking System to Improve Safety and Soundness Thomas M. Hoenig and Charles S. Morris -- Executive Summary -- Proposal -- Why Restricting Activities Is the Solution -- Evolution of Current Financial Structure -- Regulation -- Increased Competition.

Shadow Banking -- Expansion of Bank Activities -- Implications for Financial Structure, Stability, and Risk -- Changes in Financial Structure and Stability -- New Activities Make It More Difficult to Manage and Monitor Risk -- Proposal to Reduce Costs and Risks to the Safety Net and Financial System -- Restricting Activities of Banking Organizations -- Reforming the Shadow Banking System -- References -- Chapter 22. Ending Too Big to Fail: A Proposal for Reform Richard W. Fisher and Harvey Rosenblum -- Costs of the Financial Crisis -- Earlier Statements on the Need to End TBTF -- Defining and Reducing the Impact of TBTF -- The Role of Market and Regulatory Discipline -- A Proposal for Reform -- It's Not Just Size-Complexity Matters Too -- Concluding Comments -- References -- Part VIII. Where to From Here? The Implications for Financial Regulatory Policy -- Chapter 23. Where to from Here? Implementation, Implementation, Implementation Claudio Borio -- Introduction -- Recognition of the Systemic Dimension of Regulation and Supervision -- Basel III and Systemic Resilience -- International Coordination -- Conclusion -- References -- Chapter 24. Complexity in Financial Regulation Andrew G. Haldane and Vasileios Madouros -- Complexity, Comparability, and Credibility -- Can Less Be More in Finance? -- Leverage versus Risk-Based Capital -- Modelling the Risk of Small Bank Default -- Modeling Financial Risk -- Public Policy Implications -- Conclusion -- References -- Chapter 25. Financial Reform: On the Right Road, at the Right Pace? Thomas F. Huertas -- References -- Chapter 26. Banking Regulation and Supervision in the Next 10 Years and Their Unintended Consequences Danièle Nouy -- Introduction -- Unintended Consequences of New Regulation -- Recapitalization, Deleveraging, and Lending Activity.

Concerns Associated with the Implementation of Basel III Regulation.

As a result of the recent financial crisis, there has been significant public debate on the role of the financial sector in bringing about the "Great Depression." More generally, there has been debate about whether the current industry structure has enhanced social welfare or served a detrimental role. This book is a collection of papers presented at the conference held at the Federal Reserve Bank of Chicago, in November 2012 that examined the social value of the financial sector as currently structured. Issues evaluated include what are the perceived benefits and costs of the current financial system" How valuable have industry innovations been for society" Should regulation be used to "move" the industry in a direction thought to be more valuable for society" Should "big" banks be broken up" What are the welfare implications of the current industry structure" In the book, leading industry scholars debate these issues with a goal of influencing public policy toward the industry.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2019. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.

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