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Post-Crisis Bank Regulations and Financial Market Liquidity

by Darrell Duffie
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Current price ₹2,286.00
Original price ₹5,946.00
Original price ₹5,946.00
Original price ₹5,946.00
(-62%)
₹2,286.00
Current price ₹2,286.00

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Book cover type: Paperback
  • ISBN13: 9783110673029
  • Binding: Paperback
  • Subject: N/A
  • Publisher: de Gruyter
  • Publisher Imprint: de Gruyter
  • Publication Date:
  • Pages: 120
  • Original Price: GBP 47.0
  • Language: English
  • Edition: N/A
  • Item Weight: 359 grams
  • BISAC Subject(s): Insurance / General, Banks & Banking, and Finance / General

Post-crisis capital regulations and new failure-resolution rules increased the funding costs that are borne by bank shareholders, and thus the cost to buy-side firms for access to space on the balance sheets of large banks. A policy implication is the encouragement of market infrastructure and trading methods that reduce the amount of space on bank balance sheets that is needed to conduct a given amount of trade.

Using models and evidence, this book addresses the implications for financial-market liquidity of these regulations for systemically important banks and argues that current rules do not allow for potential levels of market efficiency and financial stability. In this insightful analysis of the impact of regulation on financial market efficiency post-2008, the author argues that bank capital levels could actually be pushed higher while still improving the liquidity of markets for safe assets such as low-risk fixed-income instruments by relaxing the leverage-ratio rule and increasing risk-based capital requirements.

Darrell Duffie is the The Adams Distinguished Professor of Management and Professor of Finance at Stanford Graduate School of Business. He is a fellow and member of the Council of the Econometric Society, a research fellow of the National Bureau of Economic Research, and a fellow of the American Academy of Arts and Sciences. Duffie was the 2009 president of the American Finance Association. In 2014, he chaired the Market Participants Group, charged by the Financial Stability Board with recommending reforms to Libor, Euribor, and other interest rate benchmarks.

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