Research Handbook on International Financial Regulation

The globalization of financial markets has attracted much academic and policymaking commentary in recent years, especially with the growing number of banking and financial crises and the current credit crisis that has threatened the stability of the global financial system. This major new Research Handbook sets out to address some of the fundamental issues in financial regulation from a comparative and international perspective and to identify some of the main research themes and approaches that combine economic, legal and institutional analysis of financial markets. Specially commissioned contributions represent diverse viewpoints on the financial regulation debate and cover a number of new and controversial topics not yet adequately addressed in the literature. Specifically, these include; financial innovation - particularly in the context of the credit risk transfer market, securitization and the systemic importance of the over-the-counter trading markets; the institutional structure of international financial regulation; and risk management and corporate governance of financial institutions. This Handbook will provide a unique and comprehensive resource for all those with an interest in this critical issue - including academic researchers in finance and regulation, practitioners working in the industry and those involved with regulation and policy. Contributors: K. Alexander, I. Alfon, I. Argimon, P. Bascunana-Ambros, T. Burns, A. Cornford, R. Dhumale, J. Eatwell, M. Fujii, I. Hasan, K.R. Ilmonen, E.J. Kane, M. Kawai, D. Masciandaro, D.G. Mayes, A. Nesvetailova, C. Papathanassiou, A. Persaud, D. Pesendorfer, G. Riccio, X. Roduner, C.A. Russo, A. Singh, M. Waisman

Table of Contents:
Contents: Preface Introduction PART I: THE STRUCTURE OF FINANCIAL MARKETS AND THE ROLE OF REGULATION 1. The Nature of Modern Credit Markets, Banking and Financial Innovation Kern Alexander, John Eatwell and Avinash Persaud 2. The Shadow Banking System as a New Source of Financial Turmoil Tom Burns 3. Ethical Failures in Regulating and Supervising the Pursuit of Safety Net Subsidies Edward J. Kane PART II: BANK CAPITAL ADEQUACY REGULATION AND ITS EFFECT ON BANK BEHAVIOUR 4. The Determinants of Capital Held by UK Banks and Building Societies and the Role of Individual Capital Requirements Isaac Alfon, Isabel Argimon and Patricia Bascuñana-Ambrós 5. Considerations on Developing and Validating Expected Loss (EL) Methodologies Gianluca Riccio 6. The Basel Capital Rules and Trade Finance Andrew Cornford PART III: EUROPEAN FINANCIAL REGULATION AND CRISIS MANAGEMENT 7. Some Rules for Cross-border Banks in Europe David G. Mayes 8. Transatlantic Convergence of Financial Regulation: A European Perspective Klaus R. Ilmonen 9. The New Course of EU State Aid Rules during the 2007–09 Financial Crisis Costanza A. Russo 10. Globalisation and the Regulation of FDI: Recent Proposals Ajit Singh PART IV: CENTRAL CLEARING OF DERIVATIVES 11. Central Counterparties and Derivatives Chryssa Papathanassiou 12. The European Regulation of Central Counterparties: Some International Challenges Kern Alexander PART V: INSTITUTIONS, MARKETS AND CRISIS MANAGEMENT 13. Lessons from Japan’s Banking Crisis – 1991 to 2005 Mariko Fujii and Masahiro Kawai 14. Determinants of Financial Supervision Regimes: Markets, Institutions, Politics, Law or Geography? Donato Masciandaro 15. Liquidity Illusions in the Global Financial Architecture Anastasia Nesvetailova 16. Governance in International Financial Institutions: The Case of the IMF Xenia Roduner 17. Foreign IPOs: The Experience of Israeli Firms Iftekhar Hasan and Maya Waisman 18. International Regulatory Reform and Financial Taxes Kern Alexander and John Eatwell 19. Goodbye Neo-liberalism? Contested Policy Responses to Uncertain Consequences of the 2007–09 Financial Crisis Dieter Pesendorfer 20. Summing Up and the Challenges Ahead Kern Alexander Index