- Misdiagnosis: Incomplete Cures of Financial Regulatory Failures
30 July 2014
In the aftermath of the global financial crisis, U.S. authorities are attempting to improve financial regulation and supervision. This involves a three-step process: (1) diagnosis of what went wrong…
- Banking Supervisory Architecture and Sovereign Risk
17 July 2023
This paper investigates whether the design of the banking supervisory architecture impacts sovereign risk. Exploiting the implementation of the Single Supervisory Mechanism (SSM) in Europe, we find…
- Depicting the Limits to the SSM's Supervisory Powers: The Role of Constitutional Mandates and of Fundamental Rights’ Protection
17 February 2016
Given the complexity of the new supervisory architecture in the Euro zone, it seems necessary to provide a proper theoretical framework for the lawful exercise of both regulatory and supervisory…
- Surprised or Not Surprised? The Investors’ Reaction to the Comprehensive Assessment Preceding the Launch of the Banking Union
3 February 2016
Did the Comprehensive Assessment (CA), preceding the Single Supervisory Mechanism’s launch in Europe, achieve its aims of producing new valuable information for the market? We show that the CA…
- Investment Specific Technology Shocks and Emerging Market Business Cycle Dynamics
27 April 2017
This article explores the role of investment specific technology shocks for emerging market business cycle fluctuations. The analysis is motivated by two key empirical facts; the presence of…
- How Do Banking Supervisors Deal with Europe-Wide Systemic Risk?
Report · 21 July 2003
The systemic risk potential in the European banking market has increased. Hence, the following questions emerge: Is there a need for a truly European supervisory framework? And, how should a…
- Financial Liberalization and Banking Crises: A Cross-Country Analysis
23 November 2008
Several studies indicate that financial liberalization contributes to the likelihood of a financial crisis. We focus on banking crises and argue that they are most likely to occur after some degree…
- Technology Providers and Financial Stability: Overview of Risks and Regulatory Frameworks
Report · 24 June 2025
Technology-focused Third-Party Service Providers (TPSPs) have become important players in the operations of financial institutions and the financial markets. This paper summarizes micro- and…
- Preparing for Basel IV (Whilst Commending Basel III): Why Liquidity Risks Still Present a Challenge to Regulators in Prudential Supervision ( Part II)*
2 January 2011
Whilst the predecessor (Part I) to this paper addresses criticisms and challenges which have arisen in response to recent Basel Committee's initiatives aimed at addressing capital and liquidity…
- CAMELS C in Practice: Evolution from CAMEL, Regulatory Drivers, Empirical Insights, and Strategic Imperatives for India's Banking Sector
Report · 23 July 2025
This paper traces the evolution of India's banking supervision framework from the traditional CAMEL model (Capital, Asset Quality, Management, Earnings, Liquidity) to the expanded CAMELS C paradigm…
- Measuring the Quality of Banking Supervision Revisited: Assessments by German Banks Before and During the Financial Crisis
This contribution presents and discusses main results of a new survey on the assessment of supervisory quality among German banks in 2010. In particular, it is analyzed if and how supervised banks’…
- Bank Regulation and Supervision in 180 Countries from 1999 to 2011
26 January 2013
In this paper and the associated online database, we provide new data and measures of bank regulatory and supervisory policies in 180 countries from 1999 to 2011. The data include and the measures…
- La Vigilanza Sul Sistema Finanziario: Obiettivi, Assetti E Approcci (Supervision of the Financial System: Objectives, Structures and Approaches)
12 May 2012
Dopo avere succintamente affrontato la specificità della finanza e le sue vulnerabilità, dalle quali quindi dipende la particolare attenzione che lo Stato dedica da sempre a questo settore, si…
- Capital Requirements and Bank Behavior Under Imperfect Supervision
5 October 2023
This paper considers three capital policies: (Policy 1) a leverage ratio, (Policy 2) a risk-based capital ratio that depends on banks’ self-reported asset risk, and (Policy 3) a hybrid policy that…
- The Role of Prudential Supervision and Financial Restructuring of Banks During Transition to Indirect Instruments of Monetary Control
15 February 2006
This paper proposes a stylized sequencing of banking supervision and bank restructuring measures designed to complement and expedite the adoption of indirect instruments of monetary policy.…
- Emerging Issues in Banking Regulation
17 June 2003
The paper provides an overview of the profound and rapid changes in banking brought about by technology and deregulation, and discusses the hurdles that will have to be negotiated for putting in…
- Financial Interconnectedness and Financial Sector Reforms in the Caribbean
29 August 2013
Financial sector linkages have increased continuously in the Caribbean with cross border capital flows and financial conglomerates dominating the financial system. While the greater…
- Capital Requirements and Bank Behavior under Imperfect Supervision
24 November 2021
This paper considers various capital policies that might depend on banks' self-reported asset risk. We study how banks respond to each policy and determine if any policy combination can reduce their…
- The ECB’s Macroprudential Tasks and Home-Host Supervision in the SSM: Tasks, Powers and Supervisory Gaps
Report · 27 May 2025
The Single Supervisory Mechanism (SSM) was designed to enhance supervision of the European banking sector and to promote European banking stability following the financial crisis of 2007–2009 and the…
- Cross-Border Banking in Subsidiaries and Branches; Organization, Supervision and Resolution
29 July 2011
The effective organization of cross-border banking is likely to include both subsidiaries and branches. The choice from a bank’s point of view depends on the nature of financial services provided…
- Do Monetary and Technology Shocks Move Euro Area Stock Prices?
15 July 2010
I use a Bayesian vector autoregressive (VAR) model to investigate the impact of monetary and technology shocks on the euro area stock market in 1987-2005. I find an important role for technology…
- Rules and Discretion(S) in Prudential Regulation and Supervision: Evidence from EU Banks in the Run-Up to the Financial Crisis
5 August 2025
Prior to the global financial crisis, prudential regulation in the EU was implemented non-uniformly across countries, as options and discretions allowed national authorities to apply a more favorable…
- Macroprudential Regulation and Financial Sector Stability in Surroundings of Financial Crisis: Case of Croatia
20 March 2013
Financial sector stability is a key prerequisite for efficient transfer and allocation of savings, considered to be one of foundations of economic growth. The importance of achieving and sustaining…
- The Importance of Technology in Banking During a Crisis
27 April 2022
What are the implications of information technology (IT) in banking for financial stability? Data on US banks' IT equipment and the background of their executives reveals that higher pre-crisis IT…
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