The future and dynamics of global systemically important banks
The purpose of this paper is to analyse some of the issues associated with supervision and regulation of global systemically important banks, G-SIB. The paper highlights the importance of managing liquidity risk and creating a global financial system that can minimise regulatory arbitrage by large financial institutions. The paper argues that, unlike some industries such as the airline industry in which risk has been contained and yet the size and capacity of aircrafts have increased, in the banking system, less progress has been made to contain financial risk and allow large banks to expand their global activities. The paper argues that G-SIB are able to continue remaining large provided that a globally integrated financial system ensures effective global supervision of these large banks. The paper compares the US banking crises in the 19th century and the subsequent emergence of the US Federal Reserve System to the possibility of establishing a world central bank and a global supervisory board. Such new global institutions will have the capacity to reduce regulatory arbitrage, increase effective supervision, reduce systemic and liquidity risk and create a more stable global financial system.
Volume (Year): 36 (2012)
Issue (Month): 10 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/jbf|
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.:
- Claessens, Stijn & Demirgüç-Kunt, AslI & Moshirian, Fariborz, 2009. "Global financial crisis, risk analysis and risk measurement," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 1949-1952, November.
- Moshirian, Fariborz, 2011. "The global financial crisis and the evolution of markets, institutions and regulation," Journal of Banking & Finance, Elsevier, vol. 35(3), pages 502-511, March.
- René M. Stulz, 2007.
"The Limits of Financial Globalization,"
Journal of Applied Corporate Finance,
Morgan Stanley, vol. 19(1), pages 8-15.
- René M. Stulz, 2005. "The Limits of Financial Globalization," Journal of Finance, American Finance Association, vol. 60(4), pages 1595-1638, August.
- Stulz, Rene M., 2005. "The Limits of Financial Globalization," Working Paper Series 2005-1, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
- Rene M. Stulz, 2005. "The Limits of Financial Globalization," NBER Working Papers 11070, National Bureau of Economic Research, Inc.
- Ivashina, Victoria & Scharfstein, David, 2010. "Bank lending during the financial crisis of 2008," Journal of Financial Economics, Elsevier, vol. 97(3), pages 319-338, September.
- Moshirian, Fariborz, 2008. "The significance of a world government in the process of globalization in the 21st century," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1432-1439, August.
- Moshirian, Fariborz, 2007. "Global financial services and a global single currency," Journal of Banking & Finance, Elsevier, vol. 31(1), pages 3-9, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:jbfina:v:36:y:2012:i:10:p:2675-2679. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.