The Perils of International Regime Complexity in Shadow Banking

The Perils of International Regime Complexity in Shadow Banking
Title The Perils of International Regime Complexity in Shadow Banking PDF eBook
Author Lucia Quaglia
Publisher Oxford University Press
Pages 241
Release 2022-05-26
Genre Political Science
ISBN 0192691708

Download The Perils of International Regime Complexity in Shadow Banking Book in PDF, Epub and Kindle

Despite the role of shadow banking in the building up of the 2008 international financial crisis, the massive size of this sector, its cross-border nature, and the risks it entails for financial stability, the post-crisis regulation of shadow banking has remained rather feeble. Why? The Perils of International Regime Complexity in Shadow Banking identifies a 'game of shadows', which unfolded recursively concerning the definition, monitoring, and regulation of shadow banking internationally. Thus, states, regulators, and private actors tended to cast light away from various parts of the shadow banking system - shadow banking was (re)fined over time, its measurement was narrowed down, lessening the (perceived) need for regulation. The playing out of such a game was facilitated by the international architecture for shadow banking governance, which is a 'regime complex' characterized by the presence of multiple institutions and elemental regimes governing a set of related issues. Indeed, shadow banking is a quintessential case for demonstrating the perils of international regime complexity, which magnifies problems that are endemic in governing global finance - namely, interstate competition, disagreement between technocratic bodies, and the power of the financial industry - while splintering solutions, due to the fragmentation of regulatory authority. Empirically, this book examines various elemental regimes concerning different aspects of shadow banking, namely: international standards for defining, measuring, and monitoring global shadow banking; international standards for shadow banking entities, including money market funds, hedge funds, and investment funds; international standards for shadow banking activities, such as securitization, securities lending, and repos; international standards for bank capital exposures to shadow banking.

Research Handbook on Shadow Banking

Research Handbook on Shadow Banking
Title Research Handbook on Shadow Banking PDF eBook
Author Iris H.-Y. Chiu
Publisher Edward Elgar Publishing
Pages 475
Release
Genre Banking law
ISBN 1785362631

Download Research Handbook on Shadow Banking Book in PDF, Epub and Kindle

Research Handbook on Shadow Banking brings together a range of international experts to discuss shadow banking activities, the purposes they serve, the risks they pose to the financial system and implications for regulators and the regulatory perimeter. Including discussions specific to the UK, European Union, US, China and Singapore, this book offers high level and theoretical perspectives on shadow banking and regulatory risks, as well as more detailed explorations of specific markets in shadow banking.

Shadow Banking

Shadow Banking
Title Shadow Banking PDF eBook
Author Luis Rivera
Publisher
Pages 100
Release 2013
Genre Bankers
ISBN

Download Shadow Banking Book in PDF, Epub and Kindle

The recent global financial crisis has exposed the risk of the shadow banking system. Regulators and government agencies have the daunting task of regulating the systemic risk involved in the shadow banking sector. The shadow banking system is an unregulated complex non-banking financial entity that financial institutions use for short-term funding and liquidity. Between 2008 and 2010, regulators worked on trying to understand the complex system of shadow banking for the purpose of implementing stronger regulatory policies and guidelines to mitigate the systemic risk involved in shadow banking. Currently, regulators and governmental agencies are proposing revisions for existing regulations and are adding new policies/guidelines to shadow banking and its components: asset-backed commercial paper (ABCP) conduits, structured investments (SIVs), hedge funds, money market mutual funds, repurchase agreements, and securities lenders. The purpose of this study was to examine regulatory policies that have established or proposed and the effects that these policies will have on the shadow banking system, financial institutions and the economy. This study also aims to examine whether imposed regulations are sufficient for mitigating risk, providing transparency, and preventing a future crisis. In addition, this study examines the possibilities of fraudulent activities that can occur with the shadow banking system. Keywords: Economic Crime Management, Suzanne Lynch, Shadow Banking, Financial Stability Board (FAB), Basel Committee on Banking Supervision (BCBS), International Organization of Securities Commission (IOSCO), Securities and Exchange Commission (SEC), securitization.

Creating a Safer Financial System

Creating a Safer Financial System
Title Creating a Safer Financial System PDF eBook
Author José Vinãls
Publisher International Monetary Fund
Pages 27
Release 2013-05-14
Genre Business & Economics
ISBN 1484340949

Download Creating a Safer Financial System Book in PDF, Epub and Kindle

The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.

Shadow Banking and Market-Based Finance

Shadow Banking and Market-Based Finance
Title Shadow Banking and Market-Based Finance PDF eBook
Author Tobias Adrian
Publisher International Monetary Fund
Pages 47
Release 2018-08-01
Genre Business & Economics
ISBN 1484343883

Download Shadow Banking and Market-Based Finance Book in PDF, Epub and Kindle

Variants of nonbank credit intermediation differ greatly. We provide a conceptual framework to help distinguish various characteristics—structural features, economic motivations, and risk implications—associated with different forms of nonbank credit intermediation. Anchored by this framework, we take stock of the evolution of shadow banking and the extent of its transformation into market-based finance since the global financial crisis. In light of the substantial regulatory and supervisory responses of recent years, we highlight key areas of progress while drawing attention to elements where work still needs to be done. Case studies of policy challenges arising in different jurisdictions are also discussed. While many of the amplification forces that were at play during the global financial crisis have diminished, the post-crisis reform agenda is not yet complete, and policy makers must remain attentive to new challenges looming on the horizon.

What is Shadow Banking?

What is Shadow Banking?
Title What is Shadow Banking? PDF eBook
Author Mr.Stijn Claessens
Publisher International Monetary Fund
Pages 16
Release 2014-02-11
Genre Business & Economics
ISBN 1475597940

Download What is Shadow Banking? Book in PDF, Epub and Kindle

There is much confusion about what shadow banking is. Some equate it with securitization, others with non-traditional bank activities, and yet others with non-bank lending. Regardless, most think of shadow banking as activities that can create systemic risk. This paper proposes to describe shadow banking as “all financial activities, except traditional banking, which require a private or public backstop to operate”. Backstops can come in the form of franchise value of a bank or insurance company, or in the form of a government guarantee. The need for a backstop is in our view a crucial feature of shadow banking, which distinguishes it from the “usual” intermediated capital market activities, such as custodians, hedge funds, leasing companies, etc.

The Regulatory Responses to the Global Financial Crisis

The Regulatory Responses to the Global Financial Crisis
Title The Regulatory Responses to the Global Financial Crisis PDF eBook
Author Mr.Stijn Claessens
Publisher International Monetary Fund
Pages 39
Release 2014-03-14
Genre Business & Economics
ISBN 1484336658

Download The Regulatory Responses to the Global Financial Crisis Book in PDF, Epub and Kindle

We identify current challenges for creating stable, yet efficient financial systems using lessons from recent and past crises. Reforms need to start from three tenets: adopting a system-wide perspective explicitly aimed at addressing market failures; understanding and incorporating into regulations agents’ incentives so as to align them better with societies’ goals; and acknowledging that risks of crises will always remain, in part due to (unknown) unknowns – be they tipping points, fault lines, or spillovers. Corresponding to these three tenets, specific areas for further reforms are identified. Policy makers need to resist, however, fine-tuning regulations: a “do not harm” approach is often preferable. And as risks will remain, crisis management needs to be made an integral part of system design, not relegated to improvisation after the fact.