Detailed Proposals and Related Research
This Section provides specific details and background information on the proposed changes to the regulation and supervision of financial systems around the world. The scope of the proposed changes is very broad.
To facilitate navigation through this broad topic, the information is broken down by financial market, nature of the reform proposal, and country coverage. For example, banking market reforms are shown separately from capital markets products. In each market, new regulations or official policy proposals are indicated with the letter P . Academic research on the functioning and reform of markets, and expert responses to the proposed changes are indicated with the letter R . All documents are provided in PDF format.
Comprehensive Market Reforms
R Goodman, Lawrence A Path for the FCIC, Center for Financial Stability, April 2010.
P Turner Review: A Regulatory Response to the Global Banking Crisis,
UK Financial Services Authority (FSA), March 2009.
P FSA-UK. Feedback on the Turner Review, September 2009.
P US House of Representatives HR 4173 The Wall Street Reform and Consumer Protection Act, December 11, 2009.
P US Senate Restoring American Financial Stability Act of 2010 -- Section by Section Summary, March 2010.
P Financial Stability Board Progress since the Pittsburg Summit in Implementing the G20 Recommendations for Strengthening Financial Stability, November 7, 2009.
Systemically Important Financial Institutions
P Turner Review Conference Discussion Paper: Systemically important banks and assessing the cumulative impact. UK FSA, October 2009.
R Bank of England Safeguarding Stability Financial Stability Report, Section 3, December 2009.
P IMF/ BIS / FSB Guidance to Assess the Systemic Importance of Financial Institutions, Markets and Instruments: Initial Considerations — Background Paper, October 28, 2009.
P Volcker, Paul. How to Reform Our Financial System. OP-ED Contributor New York Times, January 31, 2010.
P Volcker, Paul
Statement before the US Senate Committee on Banking, Housing and Urban Affairs, February 2, 2010.
R Scott, Hal S. Implications of the Volcker Rules for Financial Stability Statement before the US Senate Committee on Banking, Housing and Urban Affairs, February 2, 2010.
New Bank-level Capital Requirements
Basel Committee on Banking Supervision
Strengthening the Resilience of the Banking Sector, Consultative Document, December 2009.
P For details on the UK and US proposals for bank-level capital rules, see the Comprehensive Reforms section, above.
P For a discussion of the Swiss experience with new capital requirements, particularly the rationale for a much stronger “leverage ratio” see the SNB Financial Stability Report, 2009, pp. 9-10 and 36-38.
P Basel Committee on Banking Supervision. Analysis of the trading book quantitative impact study, October 2009.
Baily, Martin and Douglas Elliott.
The Causes of the Crisis and the Impact of Raising Capital Requirements, Federal Reserve Bank of Chicago Conference, September 24, 2009.
Bank Liquidity Risk and Rules
P FSA, UK. Strengthening Liquidity Standards 2 – Transitional Measures, June 2009.
P New Zealand Reserve Bank New Bank Liquidity Framework, November 2008.
R Goodhart, C.A.E. & Tsomocos,D.P. Liquidity, Default and Market Regulation, October 9, 2009
Counter-cyclical Bank Capital
P Financial Stability Board Addressing Pro-cyclicality in the Financial System, April 2009.
R Arjani, Neville et.al. Pro-cyclicality in the Financial System Bank of Canada Financial System Review, June 2009.
R Burroni, Marco, Mario Quagliariello, Emiliano Satatini, Vincenzo Tola. Dynamic provisioning: rationale, functioning and prudential treatment. Banca d’Italia Occasional Papers, November 20, 2009.
P Jimenez, Gabriel and Jesus Saurina Credit Cycles, Credit Risk and Prudential Regulation, International Journal of Central Banking. June 2006.
Derivative and Repo Markets
R Steven Lofchie. Some Concerns with the Derivatives Legislation, Center for Financial Stability, May 2010.
R Tuckman, Bruce. Amending Safe Harbors to Reduce Systemic Risk in OTC Derivatives Markets, Center for Financial Stability, April 2010.
R Tuckman, Bruce. Systemic Risk and Tri-Party Repo Clearing Banks, Center for Financial Stability, February 2010.
R Duquerroy, Anne et.al. Credit Default Swaps and Financial Stability: Risks and Regulatory Issues, Banque de France Financial Stability Review, September 2009.
R Kiff, John et.al. Credit Derivatives: Systemic Risks and Policy Options. IMF Working Paper, November 1, 2009.
Equity Trading and Liquidity
P U.S. Securities and Exchange Commission. SEC Approves Short Selling Restrictions, February 26, 2010.
R Gagnon, Louis and Jonathan Witmer. Short Changed? The Market's Reaction to the Short Sale Ban of 2008 Bank of Canada Working Paper 2009-23, August 2009.
P FSA, UK. Short-selling: Feedback on DP09/1, October 2009.
Hedge Funds & Alternative Investments
P Proposal for a Directive of the European Parliament and of the Council on Alternative Investment Fund Managers Commission of the European Communities, April 30, 2009.
P Fell, Jonathan. Best Practices in Monitoring Systemic Risk from Hedge Funds IMF/FSB Users Conference on the Financial Crisis and Information Gaps, July 2009.
Macro Risks and Policy Proposals
R Goodman, Lawrence and Yubo Wang. Hidden Risks from Expanding Governments, Center for Financial Stability, May 2010.
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