Publication:
Containing Systemic Risk : Paradigm-Based Perspectives on Regulatory Reform

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dc.contributor.authorde la Torre, Augusto
dc.contributor.authorIze, Alain
dc.date.accessioned2012-03-19T17:59:44Z
dc.date.available2012-03-19T17:59:44Z
dc.date.issued2011-01-01
dc.description.abstractFinancial crises can happen for a variety of reasons: (a) nobody really understands what is going on (the collective cognition paradigm); (b) some understand better than others and take advantage of their knowledge (the asymmetric information paradigm); (c) everybody understands, but crises are a natural part of the financial landscape (the costly enforcement paradigm); or (d) everybody understands, yet no one acts because private and social interests do not coincide (the collective action paradigm). The four paradigms have different and often conflicting prudential policy implications. This paper proposes and discusses three sets of reforms that would give due weight to the insights from the collective action and collective cognition paradigms by redrawing the regulatory perimeter to internalize systemic risk without promoting dynamic regulatory arbitrage; introducing a truly systemic liquidity regulation that moves away from a purely idiosyncratic focus on maturity mismatches; and building up the supervisory function while avoiding the pitfalls of expanded official oversight.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_20110105150802
dc.identifier.urihttps://hdl.handle.net/10986/3296
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5523
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADVERSE SELECTION
dc.subjectAGENCY PROBLEMS
dc.subjectARBITRAGE
dc.subjectASSET MANAGERS
dc.subjectASSET PRICES
dc.subjectASSET PRICING
dc.subjectASYMMETRIC INFORMATION
dc.subjectBAILOUTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK CAPITAL
dc.subjectBANK OF ENGLAND
dc.subjectBANK RUNS
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING SYSTEM
dc.subjectBARGAINING
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectCAPITAL CONSTRAINTS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REGULATION
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCENTRAL BANK
dc.subjectCLOSED ECONOMY
dc.subjectCOLLATERAL
dc.subjectCOLLECTIVE ACTION
dc.subjectCOMMERCIAL BANKING
dc.subjectCOMMERCIAL BANKS
dc.subjectCONFLICT OF INTEREST
dc.subjectCONTAINING SYSTEMIC RISK
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCONTRACT RIGHTS
dc.subjectCOORDINATION FAILURE
dc.subjectCOORDINATION FAILURES
dc.subjectCREDIT EXPANSIONS
dc.subjectCREDIT RISK
dc.subjectCREDIT RISK EXPOSURES
dc.subjectDEBT
dc.subjectDEBT CONTRACTS
dc.subjectDEBT ISSUES
dc.subjectDEEDS
dc.subjectDEFAULT RISK
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDEREGULATION
dc.subjectDISPLACEMENT
dc.subjectDOUBLE TAXATION
dc.subjectDOWNSIDE RISKS
dc.subjectDRIVERS
dc.subjectECONOMIC GROWTH
dc.subjectEMERGING MARKETS
dc.subjectEMPLOYMENT
dc.subjectENTRY REQUIREMENTS
dc.subjectEUROPEAN CENTRAL BANK
dc.subjectEXPOSURE
dc.subjectEXPOSURE TO RISKS
dc.subjectEXTERNALITIES
dc.subjectFAILURE RESOLUTION
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE BANK OF NEW YORK
dc.subjectFINANCIAL CONTRACTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FRAGILITY
dc.subjectFINANCIAL INNOVATION
dc.subjectFINANCIAL INNOVATIONS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL INTERMEDIARY
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL POLICIES
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL STRUCTURE
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectFISCAL POLICY
dc.subjectFRAUD
dc.subjectGLOBAL BANKING
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectHOUSING
dc.subjectILLIQUID ASSETS
dc.subjectIMPERFECT INFORMATION
dc.subjectINCOMPLETE MARKETS
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION ASYMMETRY
dc.subjectINFORMED INVESTORS
dc.subjectINSURANCE PREMIUM
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FINANCIAL CRISIS
dc.subjectINVESTING
dc.subjectINVESTMENT BANKS
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTOR PROTECTION
dc.subjectIRRATIONAL EXUBERANCE
dc.subjectLENDER
dc.subjectLENDER OF LAST RESORT
dc.subjectLENDER-OF-LAST-RESORT
dc.subjectLENDERS
dc.subjectLEVEL PLAYING FIELD
dc.subjectLIABILITY
dc.subjectLIQUID INVESTMENTS
dc.subjectLIQUID MARKETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY RISK
dc.subjectLOAN
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMARKET ACCESS
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET EQUILIBRIUM
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKET INEFFICIENCIES
dc.subjectMARKET LIQUIDITY
dc.subjectMARKET MICROSTRUCTURE
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PLAYERS
dc.subjectMARKET PRICES
dc.subjectMARKET SEGMENTATION
dc.subjectMARKET SPECIALISTS
dc.subjectMATURITY
dc.subjectMATURITY MISMATCH
dc.subjectMATURITY MISMATCHES
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectOPEN ECONOMY
dc.subjectPARTICIPATIONS
dc.subjectPECUNIARY EXTERNALITIES
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIOS
dc.subjectPRIVATE CAPITAL
dc.subjectPROVISIONING RULES
dc.subjectPRUDENTIAL REGULATION
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC POLICY
dc.subjectRAPID GROWTH
dc.subjectREAL ESTATE
dc.subjectREGULATOR
dc.subjectREGULATORS
dc.subjectREGULATORY APPROACHES
dc.subjectREGULATORY CONSTRAINTS
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REGIMES
dc.subjectREGULATORY SYSTEM
dc.subjectREGULATORY TREATMENT
dc.subjectRELATIONSHIP LENDING
dc.subjectREPAYMENT
dc.subjectREPUTATION
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK ASSESSMENTS
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectRISK NEUTRAL
dc.subjectRISK SHARING
dc.subjectRISK TAKING
dc.subjectRISK WEIGHTS
dc.subjectSAFETY
dc.subjectSAFETY NET
dc.subjectSAVINGS
dc.subjectSECONDARY MARKETS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKET
dc.subjectSECURITIES MARKET REGULATIONS
dc.subjectSECURITIZATION
dc.subjectSOCIAL BENEFITS
dc.subjectSOCIAL COSTS
dc.subjectSOCIAL RISKS
dc.subjectSUPERVISORY AGENCY
dc.subjectSYSTEMIC INSTABILITY
dc.subjectSYSTEMIC RISK
dc.subjectSYSTEMIC RISKS
dc.subjectTAX
dc.subjectTAX RATE
dc.subjectTAX SYSTEM
dc.subjectTRADITIONAL BANKING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPARENCY
dc.subjectVOLATILITY
dc.subjectWHOLESALE FINANCE
dc.subjectWHOLESALE FUNDING
dc.subjectWHOLESALE INVESTORS
dc.subjectWORLD ECONOMY
dc.titleContaining Systemic Risk : Paradigm-Based Perspectives on Regulatory Reformen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2011-01-01
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_20110105150802
okr.globalpracticeSocial Protection and Labor
okr.guid690221468156561785
okr.identifier.doi10.1596/1813-9450-5523
okr.identifier.externaldocumentum000158349_20110105150802
okr.identifier.internaldocumentum13331173
okr.identifier.reportWPS5523
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/01/05/000158349_20110105150802/Rendered/PDF/WPS5523.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
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
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