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Journal Article
Roundtable discussion: reflection on twenty years of bank regulatory reform
In 1986 the American Bankers Association asked five banking academics to assess and recommend policy options to improve the banking system's efficiency, performance, and safety. The report these five economists produced, Perspectives on Safe and Sound Banking: Past, Present, and Future, has in many ways served as a roadmap for ensuing bank regulatory reforms. In this roundtable discussion, each of the five authors reflects on the past twenty years and the current status of the banking industry and, in some cases, shares thoughts about the industry's future direction.
Conference Paper
Changing incentives facing financial-services regulators
Conference Paper
Offshore financial regulatory competition: a force for modernization and for crisis
How policymakers frame an economic problem inevitably restricts the range of policy solutions they entertain. It is important to prevent restrictions on the range of policy options being explored from undermining the quality of policy performance. This implies that outside economists should challenge misframing whenever they see it. ; This paper contends that, at least in the financial press, policymakers and some economists are misframing two related problems in financial regulation. The first concerns the nature of the process by which financial modernization spreads from country to ...
Working Paper
How Have Borrowers Fared in Banking Mega-mergers?
Previous studies of event returns surrounding bank mergers show that banks gain value in megamergers and additional value when they absorb in-market competitors. A portion of these gains has been traced to the increased bargaining power of banks vis-a-vis regulators and other competitors. We demonstrate that increased bargaining power of megabanks adversely affects loan customers of the acquired institution. Wealth losses are greater when loan customers are credit-constrained, the loan customer is smaller, or the acquisition is an in-market deal. These findings reinforce complaints that the ...
Journal Article
The supervisory implications of financial globalization: three views
At the 1989 Lake Bluff conference on globalization, three authorities presented their personal?and conflicting?views on international financial regulation in general, and the 1988 BIS-sponsored Basle agreement, in particular.
Conference Paper
Parameter variability, event studies, and the two-index model