13th Dubrovnik Economic Conference Discussion - Paul Wachtel

Slides:



Advertisements
Similar presentations
Comments for Measuring Bank Regulation and Supervision Session 1: The Data Workshop Sponsored by World Bank DECRG-FP October 26, 2007 Washington, DC Daniel.
Advertisements

Review of the work performed by the Task Force Global Financial Crisis and its impact on a theme paper proposed by Canada Richard Domingue SAI – Canada.
Capacity-building Needs in Strengthening Thai Financial System Dr. Tarisa Watanagase Deputy Governor, Financial Institutions Stability.
1 June 2005 Cross Border Implementation of Basel II Kevin Davis Commonwealth Bank Group Chair of Finance The University of Melbourne Director, Melbourne.
Restoring Financial Stability Towards More Proactive Regulation World Islamic Banking Conference Mahnaz Bahrami Dec.2009 Bahrain Central Bank of The Islamic.
The Challenge of Anti-Corruption Conference on Corruption and Anti-Corruption: Threats, Challenges and Opportunities Sussex Centre for the Study of Corruption,
1 X. Zhang May 2011 Intermediary Targets of Chinese Monetary Policy: Selection and Efficiency.
The Political Economy of Finance (2014) Enrico Perotti Presentation by Gerard Hertig.
Transitional Demands on Regulatory Resources and Focus The Trinidad and Tobago experience A Presentation at the World Bank Conference on Aligning Supervisory.
THE RESOLUTION OF BANKING CRISES AND MARKET DISCIPLINE: INTERNATIONAL EVIDENCE Elena Cubillas Martín Ana Rosa Fonseca Francisco González University of.
Fall 2008 Workshop & Lecture Series Law & Finance Tuesday, October 7, 2008 Corporate Governance Standards and Financial Crises Regulatory Failures & Policy.
The Economic Impact of Merger Control: What is Special About Banking? Carletti, Hartmann and Ongena Discussant: Thorsten Beck.
Global governance in a neoliberal context: the case of the Basel Capital Accord Dr. Aaron Major Department of sociology University at Albany - SUNY Albany,
1 4th BI-CEPR Conference on Money, Banking, and Finance “Lender Behavior During Credit Cycles” by Giovanni Dell’Ariccia, Deniz Igan, and Luc Laeven Discussion:
1 June 30, th Dubrovnik Economic Conference Paul Wachtel Stern School of Business. New York University.
Bank Regulation Is Changing: But for Better or Worse? Authors: James R. Barth Gerard Caprio, Jr. Ross Levine Presented by Levan Bzhalava.
The Role of Financial System in Economic Growth Presented By: Saumil Nihalani.
Consequences of Basel II for the individual SME company H.A. Rijken Vrije Universiteit, Amsterdam International Conference Small business banking and financing:
Slide 1 Sudan Private Sector Forum A Forum to support Sudanese Public – Private Sector Dialogue Prepared by Amin Sid Ahmed- World Bank, PSD Advisor Presented.
The Evolution of the Finance- Growth Nexus Paul Wachtel Stern School of Business, New York University Restoring Inclusive Growth in Advanced Economies.
NIGERIA’S FINANCIAL SYSTEM STRATEGY 2020 PERSPECTIVES ON BUILDING AN INTERNATIONAL FINANCIAL CENTRE: EXPERIENCE OF SINGAPORE.
REGULATION OF INTERNATIONAL REMITTANCES AND CENTRAL BANKS’ CO-OPERATION ON CROSS BORDER MOBILE PAYMENTS: FOCUS ON THE WEST AFRICAN MONETARY ZONE (WAMZ))
BASEL COMMITTEE ON BANKING SUPERVISION 1 Cross-Border Supervisory Cooperation under the Revised Basel Core Principles and Basel II 6th Annual International.
A Retrospective on Bank Regulation and Supervision Around the World James R. Barth Penny Prabha Auburn University and Milken Institute Milken Institute.
DETERMINANTS OF FINANCIAL DEVELOPMENT “Finance, Financial Sector Policies, and Long-Run Growth” by Ross Levine and Asli Demirgüç-Kunt PRESENTED BY MARISHA.
1 The WTO’s perspective: where Egypt stands Abdel-Hamid Mamdouh Director Trade in Services Division World Trade Organization.
Rethinking Bank Regulation James Barth Gerard Caprio Ross Levine.
Basel and Emerging Markets: A Match Not Made in Heaven Gerard Caprio This presentation draws on a forthcoming volume Rethinking Bank Regulation: Till Angels.
1. It is the administrators of the system, not capitalism that is guilty (I) 1. It is the administrators of the system, not capitalism that is guilty.
Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later presented at Conference “Comparative Transitions: A.
Preview Basel Accord is global regulatory standard on bank capital adequacy A liquidity agreed upon by the members of the Basel Committee on Banking Supervision.
Deposit Insurance Coverage, Ownership, and Banks’ Risk- taking in Europe Apanard Angkinand Department of Economics, University of Illinois at Springfield.
International transparency requirements and domestic financial regulation Third Annual GATS Seminar on Financial Services British Institute of International.
Marek Dabrowski Prospects of Economic Recovery: Potential Traps and Uncertainties Presentation for the International Conference on “The New Reform Agenda.
Chapter 11: The Economics of Financial Regulation.
Finance Banking regulation and supervision.
NS4053 Winter Term African Industrialization. African Industrialization: Overview John Page, “Africa’s Failure to Industrialize: Bad Luck or Bad Policy,”
Comment on Finance, Firm Size, and Growth by Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and Ross Levine By Stijn Claessens World Bank Conference: Small.
Credit Depth in Latin America In Latin America, credit is scarce... Note: Simple average within regions. Mean Value for the 1990s. Source: World Bank.
License to operate = License to finance illegal operations? An overview of policy options to regulate financial institutions servicing deforestation.
Why Do Countries Use Capital Controls? Prepared by R. Barry Johnston and Natalia T. Tamirisa - December 1998 Presented by: Alyaa Ezzat.
Rethinking Bank Regulation: Till Angels Govern James Barth Gerard Caprio Ross Levine.
Disclaimer: The views expressed herein are those of the author and should not be attributed to the IMF, its Executive Board, or its management. The Financial.
STATE BANK OF PAKISTAN Transforming Public Sector Banks “Views on Public Sector Banks” PAKISTAN EXPERIENCE.
Comments on: Financial Development, Financial Fragility, and Growth by Norman Loayza and Romain Ranciere Graciela L. Kaminsky George Washington University.
Keith Jefferis Comments on: “Privatisation – Cross Country Experiences” September 17, 2009.
CHALLENGES OF FINANCIAL SECTOR REFORMS IN AFRICA Louis Kasekende Chief Economist, African Development Bank.
A DECADE AFTER THE GREAT WAVE OF STRUCTURAL REFORMS: What Have We learned? Eduardo Lora Research Department Inter-American Development Bank A Decade of.
Basel Committee Norms. Basel Framework Basel Committee set up in 1974 Objectives –Supervision must be adequate –No foreign bank should escape supervision.
Firm Size, Finance and Growth Thorsten Beck Asli Demirguc-Kunt Luc Laeven Ross Levine.
Governor Stefan Ingves 15 March 2012 Financial stability from a consumer perspective Riksdag Committee on Finance.
Are Competitive Banking systems more stable? Discussion By Erlend Nier.
ADE’s 25 th anniversary Economic Governance: Key to Development ? Introduction Bruxelles – Bibliothèque Solvay – 5 October 2015.
Measuring Bank Regulation and Supervision: Lessons from Economic History Stephen Haber Stanford University Presented at the World Bank, October 26, 2007.
Newcastle Law School PGR Conference 2014 ‘The Challenges for Legal Thought in a Contemporary Society’ MACROPRUDENTIAL SUPERVISION OF OTC DERIVATIVES MARKET.
Does Financial Liberalization Spur Growth? Geert Bekaert Columbia University and NBER Campbell R. Harvey Duke University and NBER Christian T. Lundblad.
Regulating International Banking
Cornel Ban BIS.  Sharing of info among central bank governors  Development of international banking regulations  Dissemination of financial data to.
FINANCIAL LIBERALIZATION, CRISIS, AND RESCUE: Lessons for China from Latin America and East Asia.
Corporate Governance in Arab Countries
Transforming Public Sector Banks “Views on Public Sector Banks”
Economic Analysis of Financial Regulation
International Financial Conglomerates – Issues and Challenges Session 7: Cross Border Supervisory Issues Presented by Douglas W. Roeder, Senior Deputy.
Arnaud Mehl and Adalbert Winkler

Tristan Truuvert – UNSW School of Economics Honours Program
London Business School and City University, London
The Lebanon Corporate Governance Task Force ACTION PLAN
by M. Ayhan Kose Research Department International Monetary Fund
BRD The Development Bank of Rwanda Plc (BRD) is Rwanda’s only national Development Finance Institution Public limited company incorporated in 1967 and.
Presentation transcript:

13th Dubrovnik Economic Conference Discussion - Paul Wachtel Bank Regulation is Changing: But for Better or Worse James R. Barth, Gerard Caprio, Ross Levine

IFIs and Financial Structure Prior to mid 1990s the IFIs focused on macroeconomics and development Finance came to the fore Levine’s research program Caprio’s research group at World Bank Financial crises forced issue Followed by law-finance literatures Emphasis on legal institutions, governance

Bank regulation and supervision World Bank surveys were logical consequence Three waves – 1998/00, 2002 and 2005 Extensive data on bank regulation, supervision – policies, structures, compliance Challenge of this paper – quantify and aggregate data so that extensive survey information is informative. Opportunity to examine cross country differences as well as changes

Surprising observations Changes around the world in last decade; age of ‘liberalization’ very uneven More entry restrictions common Strengthening of Basle pillars  more regulatory activity Is this real? Or just appearances? Do they actually reduce probability of failure or crisis? Do they effect intermediation process?

Great data Extensive information Publicly available There for all to see – Needs no discussant But, it is not so easy to interpret – that is the challenge.

Does good regulation matter? I Logit regression to explain probability of crisis “restricting bank activities increases bank fragility” Is this association or causality? New survey shows a tendency towards increased activity restriction Should we be forecasting an increase in crises in future?

Does good regulation matter? II Logit regression with firm level data on corruption of bankers Increased supervisory powers are associated with more corruption. Basel II is leading to an increase in the powers of supervisors and a concentrations of regulatory authority Will Basel II result in more corruption?

Does good regulation matter? III Financial deepening (credit/GDP)  growth Does good regulation  deepening? Entry, capital regulation, supervisory powers do not matter However, improved private monitoring does lead to financial deepening. It is also associated with better performance (efficiency).

Is Basle being oversold? Data challenges our expectations – we would like to see that improvements in regulation lead to ‘good’ outcomes. Simulations suggest that changes in regulation are not uniformly beneficial. Perhaps regulation and supervision do not matter that much. BUT….

There is more to the story… Initial conditions matter Which countries, with which initial conditions initiate reforms? The effects of change depend on initial conditions.

What’s ahead? Great data Lot’s of stories to be told. Start of serious and important quantitative research agenda on regulation.