Monthly Archives: December 2019

SCCyB vs CCyB: Macroprudential substitutes or complements?

By | December 23, 2019

Courtesy of Mete Feridun  Under Basel III, national authorities are allowed to introduce additional capital requirements of up to 2.5% of total risk-weighted assets to ensure that their respective national banking systems have an additional buffer of capital. This buffer provides protection against potential future losses that may arise during downward phases of credit cycles, while simultaneously… Read More »

What does Corporate Social Responsibility tell us about Bank Risk?

By | December 19, 2019

Courtesy of Florian Neitzert and Matthias Petras Sustainability is one of the dominate issues of our time. In particular, public awareness about climate change has recently increased and the associated risks to society have been on the public agenda. On a political level, this culminated in the UN-Paris Climate Agreement of 2015. Since then, movements… Read More »

What do the proposed changes to the supervision of liquidity and funding risks in the UK mean?

By | December 11, 2019

Courtesy of Mete Feridun When it comes to changing UK liquidity regulations, each round of revisions – such as the liquidity coverage ratio, net stable funding ratio, and the cash-flow mismatch risk framework – typically makes funding and liquidity risk management more complex and costly for firms. However, the Prudential Regulation Authority’s (PRA) recent consultation paper… Read More »

Bankruptcy’s Adjunct Regulator

By | December 9, 2019

Courtesy of Alexandra Sickler and Kara Bruce Bankruptcy and consumer finance laws operate in independent silos. Many consumer advocates view bankruptcy as a remote and specialized field, while bankruptcy proponents tend to view bankruptcy as a complete and exhaustive system. Our forthcoming paper, Bankruptcy’s Adjunct Regulator (Florida Law Review), bridges these fields with a comprehensive… Read More »

Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models

By | December 6, 2019

Courtesy of Yan Chen and Cristiano Bellavitis Over the last few years, blockchain and its applications – such as Bitcoin – have gone through a cycle of high promise and setback. In September 2017, some commentators argued that blockchain was the most important invention since the internet and electricity. Then, a few months later, governments… Read More »

The Fed Must Reject Stealth Cut of Bank Capital Requirements

By | December 5, 2019

Courtesy of Gregg Gelzinis In a recent speech, Federal Reserve Vice Chair for Supervision Randal Quarles again publicly outlined his plan to engineer yet another decrease in the loss-absorbing capacity of the nation’s largest banks. The plan would re-design the countercyclical capital buffer (CCyB) and use misdirection to make it appear as though there would… Read More »