Strengthening the resilience of the banking sector: Proposals to strengthen global capital and liquidity regulations
AbstractAs well as addressing the Basel Committee's proposals to strengthen global capital and liquidity regulations, this paper also considers several reasons why information disclosure should be encouraged. These include the fact that imperfect information is considered to be a cause of market failure which “reduces the maximisation potential of regulatory competition”, and also because disclosure requirements would contribute to the reduction of risks which could be generated when granting reduced capital level rewards to banks who may have poor management systems. Furthermore it draws attention to the need for greater measures aimed at consolidating regulation within (and also extending regulation to) the securities markets – given the fact that „the globalisation of financial markets has made it possible for investors and capital seeking companies to switch to lightly regulated or completely unregulated markets.“
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21194.
Date of creation: Mar 2010
Date of revision:
capital; liquidity; regulations; bank; Basel II; risks; disclosure;
Find related papers by JEL classification:
- K2 - Law and Economics - - Regulation and Business Law
- G2 - Financial Economics - - Financial Institutions and Services
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ACC-2010-03-28 (Accounting & Auditing)
- NEP-ALL-2010-03-28 (All new papers)
- NEP-BAN-2010-03-28 (Banking)
- NEP-LAW-2010-03-28 (Law & Economics)
- NEP-REG-2010-03-28 (Regulation)
- NEP-RMG-2010-03-28 (Risk Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ojo, Marianne, 2010. "The impact of capital and disclosure requirements on risks and risk taking incentives," MPRA Paper 20404, University Library of Munich, Germany.
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