Can Prudential Regulation Help the Transition to a Green Economy?

By | February 22, 2019

Courtesy of Lorenzo Esposito[1], Giuseppe Mastromatteo[2] and Andrea Molocchi[3] Among the many lessons learned by the financial industry, central banks, and economists in the wake of the global financial crisis, the most important may be the relevance of systemic risk. In a market dominated by multinational financial conglomerates, developments and disruptions in one country can… Read More »

The Problems with Market-Based Finance and the Risks Emerging From the EU Capital Markets Union

By | February 13, 2019

Courtesy of Vincenzo Bavoso In my recent article published in Convivium, titled Market-Based Finance, Debt and Systemic Risk: A Critique of the EU Capital Markets Union, I addressed the question of whether fully integrated capital markets across the European Union (under the EU Capital Markets Union – CMU) can facilitate economic growth and stability, or… Read More »

Digitalisation of Payment Services in Europe

By | February 5, 2019

Courtesy of Fernando Zunzunegui Technology has made financial services more accessible, faster, and cheaper. Payment services, in particular, are a testing ground for fintech innovation.  Cryptocurrencies, payment initiation, and information management services associated with bank accounts have recently emerged as significant disruptions in the payments industry. As data has become essential to economic success, the… Read More »

ICO Regulation not Slowed by Brexit or US Shutdown Chaos

By | January 28, 2019

Courtesy of Barbara C. Matthews It seems somehow ironic and fitting that the economic sector most hostile to centralized governments – cryptocurrency and initial coin offerings (ICOs)  – faces renewed regulatory activity despite the UK Brexit and US shutdown chaos.  On January 23, the Financial Conduct Authority (FCA) in the United Kingdom issued a new… Read More »

The Good and Bad of Bank Regulation: The Case of Industrial Banks

By | January 15, 2019

 Courtesy of James R. Barth and Yanfei Sun [1] “Industrial banks” are financial institutions that are probably a mystery to most Americans. Although they may not be household names, industrial banks (IBs) have existed for more than a century. Indeed, they pre-date the establishment of the Federal Reserve in 1913. Their names are a nod to… Read More »

A New Proposal to Expand Banking Services in Rural America

By | December 15, 2018

There are now two Americas. A growing, dynamic, and prosperous urban America (including suburbs) that votes almost exclusively Democratic, and a shrinking, poor, rural America that votes Republican. This divide carries significant consequences, from increased polarization to the opioid epidemic, and defies traditional economic logic. Unless something is done soon to turn around the economic… Read More »

Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule

By | December 13, 2018

Courtesy of Oscar Borgogno* and Giuseppe Colangelo** In our paper ‘Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule’, we focus on the EU regulatory effort, enshrined in the Directive 2366/2015 on payment services in the internal market (PSD2), to enact a sector-specific portability regime (the access to account… Read More »

Post-Crisis Consumer Financial Protection: Did it Help?

By | December 12, 2018

Courtesy of Javier Garcia Gonzalez After the financial crisis of 2007-2008, there was a wave of regulatory changes in the US regarding consumer financial protection that mostly applied to mortgages and student loans. These new regulations granted consumers additional disclosures, banned abusive practices and fought deceptive practices. It was consistent with the narrative that consumers… Read More »

Safe Until They Aren’t? Investigating Liquidity Illusions in the Exchange Traded Fund Market

By | December 6, 2018

Since the 2008 global financial crisis (GFC) exchange traded funds (ETFs) have experienced remarkable growth.[1] A recent Bloomberg report pegs the worldwide ETF market at over $5.3 trillion (up from $700 billion pre-GFC) with the U.S. accounting for nearly 70 percent of its size.[2] The number of available products has grown exponentially.[3] Product variety seems… Read More »