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The Impact Of Financial Innovation On Banking Regulation. Evidence From The Global Financial Crisis

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  • BAICU, Claudia Gabriela

    (Spiru Haret University)

Abstract

The development of financial innovations in a fast pace led to increased efficiency of the financial system, but raises some issues regarding the regulation and supervision of financial activity. The latest example is the global financial crisis, which has pointed out the negative role played by the financial innovations of credit risk transfer on the stability of the financial system. Starting from the above, the article herein is structured in the following sections: the first one reviews the decisive factors of the financial innovation, the second one highlights the role of the financial innovations in the global financial crisis and the final one refers to the impact of the financial innovations on the financial regulation and supervision.

Suggested Citation

  • BAICU, Claudia Gabriela, 2011. "The Impact Of Financial Innovation On Banking Regulation. Evidence From The Global Financial Crisis," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 2(4), pages 31-40.
    • Handle: RePEc:ris:sphecs:0151
    as

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    References listed on IDEAS

    as
    1. W. Scott Frame & Lawrence J. White, 2004. "Empirical Studies of Financial Innovation: Lots of Talk, Little Action?," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 116-144, March.
    2. Kane, Edward J, 1977. "Good Intentions and Unintended Evil: The Case against Selective Credit Allocation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 9(1), pages 55-69, February.
    3. Kane, Edward J, 1981. "Accelerating Inflation, Technological Innovation, and the Decreasing Effectiveness of Banking Regulation," Journal of Finance, American Finance Association, vol. 36(2), pages 355-367, May.
    4. Xavier Vives, 2011. "Competition and Stability in Banking," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Felipe Céspedes & Roberto Chang & Diego Saravia (ed.),Monetary Policy under Financial Turbulence, edition 1, volume 16, chapter 12, pages 455-502, Central Bank of Chile.
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    Cited by:

    1. I.G.Okafor, Ph.D, 2019. "Analysis of Financial Innovation Development in Nigerian Banking Sector," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 3(11), pages 559-570, November.

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    More about this item

    Keywords

    banking regulation; financial innovation; global financial crisis;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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