Why Are There So Many Banking Crises?: The Politics and Policy of Bank Regulation
| Author | : | |
| Rating | : | 4.81 (576 Votes) |
| Asin | : | 0691131465 |
| Format Type | : | paperback |
| Number of Pages | : | 320 Pages |
| Publish Date | : | 2015-01-12 |
| Language | : | English |
DESCRIPTION:
Almost every country in the world has sophisticated systems to prevent banking crises. If, for example, political authorities are allowed to pressure banking regulators into bailing out banks that should be allowed to fail, then regulation will lack credibility and market discipline won't work. Yet such crises--and the massive financial and social damage they can cause--remain common throughout the world. His proposals for reforms that could limit the frequency and severity of banking crises should interest a wide range of academic economists and those working for central and private banks and financial services authorities.. Does deposit insurance encourage depositors and bankers to take excessive ri
Jean-Charles Rochet is professor of mathematics and economics at the University of Toulouse and a visiting professor at the London School of Economics and Political Science. His books include (with Xavier Freixas) "Microeconomics of Banking" and (with Guillaume Plantin) "When Insurers Go Bust" (Princeton).
The concise conclusions of the individual articles provide valuable ideas for changes in banking regulation."--Bernd Brommundt, Financial Markets and Portfolio Management. Jean-Charles Rochet, a leading authority on banking, argues the real problem lies with politicians who too often insist on rescuing insolvent banks for short-term reasons of their own. I can recommend the book to anyone interested in a formal, academic approach to banking regulation. "Among economists' explanations are moral hazard, ill-judged capital adequacy rules and the incompetence of supervisors. Whatever the verdict on the policy proposals, the book makes interesting reading in current circumstances."--John Plender, Financial Times"The book provides an excellent introduction to the theory of ban