Monthly Archives: August 2018

Does Financial Tranquility Call for Stringent Regulation?

By | August 30, 2018

Courtesy of Deepal Basak and Yunhui Zhao[1] On August 22, 2018, the U.S. stock market broke the record for longest-ever bull market run after the S&P 500 went 3,453 days without a drop of 20 percent (a decline normally associated with a bear market). In fact, despite recent financial turbulence associated with monetary policy normalization… Read More »

Fintech and Inclusive Finance: Striking an Appropriate Regulatory Balance

By | August 27, 2018

Courtesy of James Guild[1] The tech industry is often seen as a frontier for innovation and creative destruction, a place where engineers aren’t afraid to break things in the race to develop the next market-moving app. In recent years, tech companies have set their sights on the finance industry (Fintech), engendering a natural tension as… Read More »

Anonymous Money is Fungible Money

By | August 23, 2018

Courtesy of Alastair Berg[1] Fungibility is a key characteristic of money.  This has long been taught to students in high school and university economics courses. A rational individual should be indifferent to exchanging one note or coin with another of equal nominal value, provided of course there are no transaction costs. some degree this characteristic… Read More »

International Regulatory Cooperation: FinTech Edition

By | August 20, 2018

Courtesy of Barbara C. Matthews Financial regulators have been finding new ways to cooperate and coordinate policy formation since the Basel Committee was created in the early 1970s.  Sectoral groups (IOSCO for securities, IAIS for insurance) were joined by cross-functional groups following the Asian Financial crisis (the Financial Stability Forum) and the most recent financial… Read More »

Hedge Funds and Cryptocurrencies: a top-down analysis of Malta’s regulatory framework

By | August 16, 2018

Courtesy of Damiano Di Maio, LL.M. and Andrea Vianelli, LL.M Cryptocurrencies and blockchain technology are two of the hottest topics in finance. While most discussions surrounding the crypto industry revolve around the underlying technology and its potential applications in the financial industry, the regulatory treatment of crypto-assets is less discussed and remains opaque to most… Read More »

Ethical Finance as a Systemic Challenge: Risk, Culture, and Structure

By | August 14, 2018

Courtesy of Saule T. Omarova Lately, there has been no shortage of scandals involving fraudulent, predatory, and otherwise ethically unacceptable behavior on the part of large financial institutions. Much of this behavior was also directly implicated in the generation of unsustainable levels of risk in the financial system, which led to the global financial crisis… Read More »

Behavioral Biases in Peer-to-Peer (P2P) Lending

By | August 13, 2018

Courtesy of Shahar Ayal, Daphna Bar-Haim and Moran Ofir Peer-to-Peer (P2P) lending refers to online marketplaces where lenders lend to individuals or small businesses. This rapidly expanding new source of credit eliminates the traditional financial intermediary and reduces financial exclusion by allowing more people to borrow and lend. At the same time, the replacement of… Read More »

Intensive Margin of the Volcker Rule: Price Quality and Welfare

By | August 8, 2018

Courtesy of Sakai Ando & Misaki Matsumura The Volcker rule was included in the 2010 Dodd-Frank Act at the behest of former Federal Reserve Chairman Paul Volcker, who argued that banks should not be allowed to speculate with government insured deposits.1 The rule limits the ability of banking entities, acting as dealers, to take risks… Read More »