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The Regulatory Response to the Sovereign-Bank Nexus

In: Achieving Financial Stability Challenges to Prudential Regulation

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  • Luc Laeven

Abstract

The regulatory response to the global financial crisis has been swift and energetic. There is by now a widespread consensus that the pre-crisis regulatory environment was too lax and that banking supervision had been too weak. Much progress has been made to date in individual areas, ranging from the Dodd–Frank Act in the United States to the CRD-IV and the establishment of the banking union with common supervision in the euro area and the Basel III regulations at the international level. And banks have responded to these regulatory initiatives and associated market pressures by substantially raising capital ratios…

Suggested Citation

  • Luc Laeven, 2017. "The Regulatory Response to the Sovereign-Bank Nexus," World Scientific Book Chapters, in: Douglas D Evanoff & George G Kaufman & Agnese Leonello & Simone Manganelli (ed.), Achieving Financial Stability Challenges to Prudential Regulation, chapter 5, pages 55-61, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813223400_0005
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    References listed on IDEAS

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    1. Luc Laeven & Fabian Valencia, 2020. "Systemic Banking Crises Database II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 307-361, June.
    2. Laeven, Luc, 2019. "The regulatory response to the sovereign-bank nexus," Global Finance Journal, Elsevier, vol. 39(C), pages 17-20.
    3. Juan J. Cruces & Christoph Trebesch, 2013. "Sovereign Defaults: The Price of Haircuts," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(3), pages 85-117, July.
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    Cited by:

    1. Nicolas Soenen & Rudi Vander Vennet, 2020. "ECB Monetary Policy and Bank Default Risk," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/997, Ghent University, Faculty of Economics and Business Administration.
    2. Soenen, Nicolas & Vander Vennet, Rudi, 2022. "ECB monetary policy and bank default risk☆," Journal of International Money and Finance, Elsevier, vol. 122(C).
    3. Laeven, Luc, 2019. "The regulatory response to the sovereign-bank nexus," Global Finance Journal, Elsevier, vol. 39(C), pages 17-20.
    4. Polyzos, Stathis & Samitas, Aristeidis & Kampouris, Ilias, 2021. "Economic stimulus through bank regulation: Government responses to the COVID-19 crisis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    5. Andrzej R. Stopczyński, 2020. "Banki na progu upadłości – refleksje nad postępowaniem," Bank i Kredyt, Narodowy Bank Polski, vol. 51(5), pages 517-548.

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    More about this item

    Keywords

    Money and Banking; International Banking; Financial Instititions; Banks; Regulations; Compliance; Financial Crisis; Great Financial Crisis 2008; Microprudential; Macroprudential; Financial Stability;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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