Publication:
Regulatory Reform : Integrating Paradigms

Simple item page
dc.contributor.authorde la Torre, Augusto
dc.contributor.authorIze, Alain
dc.date.accessioned2012-03-19T19:10:18Z
dc.date.available2012-03-19T19:10:18Z
dc.date.issued2009-02-01
dc.description.abstractThe Subprime crisis largely resulted from failures to internalize systemic risk evenly across financial intermediaries and recognize the implications of Knightian uncertainty and mood swings. A successful reform of prudential regulation will need to integrate more harmoniously the three paradigms of moral hazard, externalities, and uncertainty. This is a tall order because each paradigm leads to different and often inconsistent regulatory implications. Moreover, efforts to address the central problem under one paradigm can make the problems under the others worse. To avoid regulatory arbitrage and ensure that externalities are uniformly internalized, all prudentially regulated intermediaries should be subjected to the same capital adequacy requirements, and unregulated intermediaries should be financed only by regulated intermediaries. Reflecting the importance of uncertainty, the new regulatory architecture will also need to rely less on markets and more on "holistic" supervision, and incorporate countercyclical norms that can be adjusted in light of changing circumstances.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090504085341
dc.identifier.doi10.1596/1813-9450-4842
dc.identifier.urihttps://hdl.handle.net/10986/4118
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 4842,Proceedings
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY
dc.subjectACCOUNTING
dc.subjectADVERSE SELECTION
dc.subjectAGENCY PROBLEM
dc.subjectAGENCY PROBLEMS
dc.subjectARBITRAGE
dc.subjectASSET MANAGERS
dc.subjectASSET PRICE
dc.subjectASSET PRICES
dc.subjectASYMMETRIC INFORMATION
dc.subjectBAILOUTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK EARNINGS
dc.subjectBANK FAILURE
dc.subjectBANK FAILURE RESOLUTION
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBID
dc.subjectBORROWER
dc.subjectBROKERAGE
dc.subjectBROKERAGE ACTIVITIES
dc.subjectBROKERS
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL RATIOS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKS
dc.subjectCHANNEL OF FINANCE
dc.subjectCOLLECTIVE ACTION
dc.subjectCOMMERCIAL BANKING
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSOLIDATED SUPERVISION
dc.subjectCONSUMER PROTECTION
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCOORDINATION FAILURE
dc.subjectCOORDINATION FAILURES
dc.subjectCREDIT CHAIN
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCREDIT DERIVATIVES
dc.subjectCREDIT ENHANCEMENTS
dc.subjectCREDIT LINES
dc.subjectCREDIT MARKET
dc.subjectCREDIT RISK
dc.subjectCREDIT RISK EXPOSURES
dc.subjectCREDITWORTHY BORROWERS
dc.subjectDEBT
dc.subjectDEBT CONTRACTS
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSIT RATES
dc.subjectDEPOSITOR
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDEREGULATION
dc.subjectDERIVATIVE
dc.subjectDERIVATIVE CONTRACTS
dc.subjectDERIVATIVE MARKETS
dc.subjectECONOMIC CONDITIONS
dc.subjectEFFECTIVE GOVERNANCE
dc.subjectEQUITY INVESTMENTS
dc.subjectEQUITY SWAPS
dc.subjectEXCHANGE RATE
dc.subjectEXPOSURE
dc.subjectEXTENSION OF CREDIT
dc.subjectEXTERNALITIES
dc.subjectFAIR VALUE
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL CONGLOMERATES
dc.subjectFINANCIAL CONTRACTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEEPENING
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL DEVELOPMENTS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INNOVATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKET PARTICIPANTS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFRAUD
dc.subjectGOVERNANCE ISSUES
dc.subjectGOVERNANCE STANDARDS
dc.subjectGOVERNMENT INTERVENTION
dc.subjectHEDGE FUNDS
dc.subjectHOLDING
dc.subjectHOUSING
dc.subjectHOUSING FINANCE
dc.subjectHOUSING PRICES
dc.subjectINFLATION
dc.subjectINFORMATION ASYMMETRY
dc.subjectINFORMED INVESTORS
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINVESTING
dc.subjectINVESTMENT BANKING
dc.subjectINVESTMENT BANKS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT VEHICLES
dc.subjectINVESTOR PROTECTION
dc.subjectLEGISLATION
dc.subjectLENDER-OF-LAST-RESORT
dc.subjectLENDERS
dc.subjectLEVY
dc.subjectLIMITED LIABILITY
dc.subjectLIQUID ASSETS
dc.subjectLIQUID SECONDARY MARKETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CRISES
dc.subjectLIQUIDITY FACILITIES
dc.subjectLIQUIDITY RISK
dc.subjectLOAN
dc.subjectMALFEASANCE
dc.subjectMANDATES
dc.subjectMARKET DEVELOPMENT
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKET LIQUIDITY
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PLAYERS
dc.subjectMARKET RISKS
dc.subjectMARKET VALUES
dc.subjectMARKET-MAKING
dc.subjectMATURITY
dc.subjectMATURITY GAP
dc.subjectMATURITY MISMATCHES
dc.subjectMATURITY STRUCTURE
dc.subjectMONETARY AUTHORITIES
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE LENDING
dc.subjectMORTGAGE-BACKED SECURITIES
dc.subjectMORTGAGES
dc.subjectMUTUAL FUNDS
dc.subjectNEW MARKETS
dc.subjectOPPORTUNISTIC BEHAVIOR
dc.subjectOVERNIGHT REPOS
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPOLICY RESPONSES
dc.subjectPORTFOLIO
dc.subjectPORTFOLIOS
dc.subjectPRICE RISK
dc.subjectPRICE VOLATILITY
dc.subjectPRINCIPAL-AGENT PROBLEM
dc.subjectPRINCIPAL-AGENT PROBLEMS
dc.subjectPRUDENTIAL REGULATION
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPRUDENTIAL REQUIREMENTS
dc.subjectPRUDENTIAL STANDARDS
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC LENDER
dc.subjectPUBLIC POLICY
dc.subjectRATING AGENCIES
dc.subjectREAL SECTOR
dc.subjectREGULATOR
dc.subjectREGULATORS
dc.subjectREGULATORY FORBEARANCE
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REQUIREMENTS
dc.subjectREPAYMENT
dc.subjectREPAYMENTS
dc.subjectREPUTATION
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectRISK MANAGERS
dc.subjectRISK PREMIUM
dc.subjectRISK TAKING
dc.subjectRISK WEIGHT
dc.subjectRISK WEIGHTS
dc.subjectRISKY ASSETS
dc.subjectSAFETY NET
dc.subjectSALE OF MORTGAGE
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKET
dc.subjectSECURITIES MARKETS
dc.subjectSHAREHOLDERS
dc.subjectSHORT-TERM LIABILITIES
dc.subjectSMALL BORROWER
dc.subjectSOCIAL COST
dc.subjectSOCIAL COSTS
dc.subjectSOCIAL RISKS
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET PRICE
dc.subjectSTOCK PRICES
dc.subjectSTOCK TRADING
dc.subjectSTOCKS
dc.subjectSWAP
dc.subjectSYSTEMIC RISK
dc.subjectSYSTEMIC RISKS
dc.subjectTRADING
dc.subjectTRADITIONAL BANKING
dc.subjectTRANCHES
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectUNDERLYING ASSET
dc.subjectUNIVERSAL BANKING
dc.subjectVALUATIONS
dc.subjectWHOLESALE FINANCE
dc.subjectWHOLESALE INVESTORS
dc.titleRegulatory Reform : Integrating Paradigmsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleRegulatory Reform: Integrating Paradigms
okr.date.doiregistration2025-04-10T12:18:14.561061Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090504085341
okr.globalpracticeSocial Protection and Labor
okr.guid327811468265787705
okr.identifier.doi10.1596/1813-9450-4842
okr.identifier.externaldocumentum000158349_20090504085341
okr.identifier.internaldocumentum10517110
okr.identifier.reportWPS4842
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/05/04/000158349_20090504085341/Rendered/PDF/WPS4842.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeLatin America & Caribbean
okr.sectorFinance :: Micro- and SME finance
okr.themeFinancial and private sector development :: Standards and financial reporting
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.unitChief Economist (LCRCE)
okr.volume1 of 1
relation.isAuthorOfPublication35317b87-0569-5cde-bb5e-db1a425e6889
relation.isAuthorOfPublicationddbea2d3-9cc2-52f4-ab28-94372063d761
relation.isAuthorOfPublication.latestForDiscovery35317b87-0569-5cde-bb5e-db1a425e6889
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS4842.pdf
Size:
227.84 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS4842.txt
Size:
135.97 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers