Why Talk of Bank Capital ‘Floors’ Is Raising the Roof

2019-03-25T14:52:01-04:00June 8, 2017|

By Tobias Adrian and Aditya Narain

June 8, 2017

The headquarters of the Bank for International Settlements in Basel, Switzerland, which houses the Basel Committee on Banking Supervision (photo: Christian Hartmann/Reuters/Newscom)

Calculating how much capital banks should have is often a bone of contention between regulators and banks. While there has been considerable progress on reaching consensus on an international standard, one key issue remains unresolved. This […]

Why International Financial Cooperation Remains Essential

2019-03-26T09:34:17-04:00March 23, 2017|

By Tobias Adrian and Maurice Obstfeld

Versions in: عربي (Arabic), 中文 (Chinese), Français (French), Русский (Russian), and Español (Spanish)

Economic growth appears to be strengthening across the large economies, but that does not mean financial-sector regulation can now be relaxed. On the contrary, it remains more necessary than ever, as does international cooperation to ensure the safety and resilience of global capital markets. That is why the Group of Twenty (G20) finance ministers and central bank governors reiterated their support for continuing financial-sector reform at their meeting in Baden-Baden last week. […]

Just Do It—Shaping the New Financial System

2017-04-15T14:33:38-04:00October 3, 2010|

The crisis exposed fundamental weaknesses in many areas of the world economy, the most obvious being dramatic deficiencies in the regulation and supervision-nationally and internationally-of financial institutions and markets. On the bright side, the crisis provided the impetus for a major overhaul of the financial regulatory system. So, are we making the most of this opportunity to fix the system? A new Staff Position Note, Shaping the New Financial System, examines just how far we’ve come and, more importantly, how much further we have to go. The good news is that policymakers have made important progress in some areas, and the work underway is moving in the right direction. The bad news is that we are barely half way there and the hardest part may lie ahead. Indeed, unless there is concrete progress over the next 12 months in a few key areas, we may well sow the seeds of the next financial crisis.
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