Global Governance of Financial Systems: The International Regulation of Systemic Risk

by Kern Alexander, Rahul Dhumale, John Eatwell

Overview

The book sets forth the economic rationale for international financial regulation and what role, if any, international regulation can play in effectively managing systemic risk while providing accountability to all affected nations. The book suggests that a particular type of global governance structure is necessary to have more efficient regulation of the international financial system.

Product Details

ISBN-13:	9780199883233
Publisher:	Oxford University Press
Publication date:	09/08/2005
Series:	CERF Monographs on Finance and the Economy
Sold by:	Barnes & Noble
Format:	eBook
File size:	4 MB

About the Author

University of Cambridge

Federal Reserve Bank of New York

Queens College, Cambridge

Table of Contents

1. Managing Systemic Risk—The Rationale for International Financial Regulation2. The International Response for Financial Instability3. The International Legal Framework for International Financial Regulation4. The Formation of Binding International Financial Regulation and the Role of International Soft Law Norms5. Strengthening the Global Financial System through Institutional and Legal Reform6. Incentives vs. Rules: Alternative Approaches to International Financial Regulation7. The Economics of Systemic Risk in International Settlements8. A Microeconomic Examination of Financial Fragility: A Test of Capital Adequacy Standards9. Reforming the Basel Accord and the use of Subordinated Debt: Making Markets Work for the Regulator

Editorial Reviews

This book finds serious deficiencies with the by now extensive system of committees, organizations, rules, and guidelines that have emerged to govern and manage the international financial system. Concretely, it suggests that the existing framework, based on the supervision of individual financial institutions (especially banks), fails to take adequate account of the negative macroeconomic consequences that may flow from the financial failures of particular institutions. Even worse, emerging rules (such as the Basel II guidelines for minimum bank capital) may actually increase systemic fragility by making financial institutions more homogeneous in their behavior, leading to abrupt disruptions (financial crises) following periods of apparent but fragile stability. In making its central argument, the book offers informative coverage of the International Monetary Fund, the Basel committees on banking, the Asian financial crises, bankruptcy, the legal aspects of the system for settlement of payments, and many other relevant topics.

Foreign Affairs

This book finds serious deficiencies with the by now extensive system of committees, organizations, rules, and guidelines that have emerged to govern and manage the international financial system. Concretely, it suggests that the existing framework, based on the supervision of individual financial institutions (especially banks), fails to take adequate account of the negative macroeconomic consequences that may flow from the financial failures of particular institutions... In making its central argument, the book offers informative coverage of the International Monetary Fund, the Basel committees on banking, the Asian financial crises, bankruptcy, the legal aspects of the system for settlement of payments, and many other relevant topics. —Foreign Affairs

"This volume is a well-written, thoughtful analysis of the role of regulation in the international financial system. One does not have to agree with all the policy conclusions to gain insight from the authors' approach. Highly recommended."—CHOICE

From the Publisher