Why Are There So Many Banking Crises? : : The Politics and Policy of Bank Regulation / / Jean-Charles Rochet.

• Superior document: Title is part of eBook package: De Gruyter Princeton University Press eBook-Package Backlist 2000-2013
• VerfasserIn: Rochet, Jean-Charles,
• MitwirkendeR: Décamps, Jean-Paul,; Freixas, Xavier,; Parigi, Bruno M.,; Rochet, Jean-Charles,; Roger, Benoît,; Tirole, Jean,; Vives, Xavier,
• Place / Publishing House: Princeton, NJ : : Princeton University Press, , [2009]; ©2008
• Year of Publication: 2009
• Edition: Course Book
• Language: English
• Physical Description: 1 online resource (320 p.)

Almost every country in the world has sophisticated systems to prevent banking crises. Yet such crises--and the massive financial and social damage they can cause--remain common throughout the world. Does deposit insurance encourage depositors and bankers to take excessive risks? Are banking regulations poorly designed? Or are banking regulators incompetent? Jean-Charles Rochet, one of the world's leading authorities on banking regulation, argues that the answer in each case is "no." In Why Are There So Many Banking Crises?, he makes the case that, although many banking crises are precipitated by financial deregulation and globalization, political interference often causes--and almost always exacerbates--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. Only by insuring the independence of banking regulators, Rochet says, can market forces work and banking crises be prevented and minimized. In this important collection of essays, Rochet examines the causes of banking crises around the world in recent decades, focusing on the lender of last resort; prudential regulation and the management of risk; and solvency regulations. 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.

Table of Contents

Frontmatter -- Contents -- Preface and Acknowledgments -- General Introduction and Outline of the Book -- PART 1. Why Are There So Many Banking Crises? -- Chapter One. Why Are There So Many Banking Crises? -- PART 2. The Lender of Last Resort -- Chapter Two. Coordination Failures and the Lender of Last Resort: Was Bagehot Right After All? -- Chapter Three. The Lender of Last Resort: A Twenty-First-Century Approach -- PART 3. Prudential Regulation and the Management of Systemic Risk -- Chapter Four. Macroeconomic Shocks and Banking Supervision -- Chapter Five. Interbank Lending and Systemic Risk -- Chapter Six Controlling Risk in Payment Systems -- Chapter Seven. Systemic Risk, Interbank Relations, and the Central Bank -- PART 4 Solvency Regulations -- Chapter Eight. Capital Requirements and the Behavior of Commercial Banks -- Chapter Nine. Rebalancing the Three Pillars of Basel II -- Chapter Ten. The Three Pillars of Basel II: Optimizing the Mix