In late 2008, the world’s financial system was teetering on the brink of systemic collapse. While the impacts of the global financial crisis would be felt immediately, at every level of the economy, it would also send years-long aftershocks through investment, banking and regulatory circles worldwide.
More than a decade after the worst year of the global financial crisis, what has been learned from its harsh lessons? Are governments and regulators more prepared for another financial system failure that would significantly affect the real economy? What may be the potential triggers for such a collapse to occur in the future?
Systemic Risk in the Financial Sector: Ten Years after the Great Crash draws on some of the world’s leading experts on financial stability and regulation to examine and critique the progress made since 2008 in addressing systemic risk. The book covers topics such as central banks and macroprudential policies; fintech; regulators’ perspectives from the United States and the European Union; the logistical and incentive challenges that impede standardization and collection; clearing houses and systemic risk; optimal resolution and bail-in tools; and bank leverage, welfare and regulation.
Drawing on experts across disciplines — including Howell Jackson, John Geanakoplos, Charles Goodhart, Anat Admati, Donato Masciandaro, Roberta Romano and Martin Hellwig — Systemic Risk in the Financial Sector is the definitive guide to understanding the global financial crisis, the safeguards being put into place to try to avoid similar crises in the future, and the limitations of those safeguards.
Introduction: Thinking Hard about Systemic Risk
Howell E. Jackson
Regulating Systemic Risk in Canada
Anita Anand and Maziar Peihani
Bank Resolution a Decade after the Global Financial Crisis: A Systematic Reappraisal
Emilios Avgouleas and Charles Goodhart
Three Major Financial Crises: What Have We Learned?
Ross P. Buckley, Emilios Avgouleas and Douglas W. Arner
Fintech, Regtech and Systemic Risk: The Rise of Global Technology Risk
Douglas W. Arner, Ross P. Buckley and Dirk Zetzsche
Regulating Systemic Risk in the EU Financial Sector
Danny Busch and Mirik van Rijn
Clearing Houses and Systemic Risk
Paolo Saguato and Guido Ferrarini
Tackling Systemic Risk for Banks and Countries: Perspectives from the United States and Europe
Ron Feldman and Paul Hiebert
The Data Standardization Challenge
Richard Berner and Kathryn Judge
Central Banks as Macroprudential Authorities: Economics and Politics
Activities Are Not Enough! Why Non-bank SIFI Designations Are Essential to Prevent Systemic Risk
Jeremy C. Kress, Patricia A. McCoy and Daniel Schwarcz
Toward a Better Bail-in Tool: Observations from a European Perspective
Tobias H. Tröger
Pitfalls of Global Harmonization of Systemic Risk Regulation in a World of Financial Innovation
Bank Leverage, Welfare and Regulation
Anat R. Admati and Martin F. Hellwig
Leverage Caused the 2007–2009 Crisis
Conclusion: Closing Perspectives on Regulating Systemic Risk
Steven L. Schwarcz