Financial Regulation

Rent Check 1. Niskanen Center advisory board member Anat Admati on what we haven't learned since the '08 Financial Crisis. 2. Contingent collateral bonds reduce risk, but only if they [...]

Niskanen Center advisory board member and co-author of The Bankers’ New Clothes Anat Admati sat down with Russ Roberts of econtalk to discuss the decade following the financial crisis and [...]

One instrument that balances banks’ desire to borrow with the benefits of equity for financial stability is a contingent convertible (CoCo) bond. The particulars of these securities vary from bond [...]

1. How policy uncertainty raises the cost of capital. 2. Panic as the match that lit the fuse of the financial crisis. 3. Finding the optimal capital requirement.

Policy uncertainty can impose economic costs independent of the character of the expected regulation. As long as there is uncertainty about the future regulatory environment, the costs of raising capital [...]

Everyone has their favorite cause of the financial crisis. For folks on the right, it’s government intervention through Fannie Mae and Freddie Mac or low interest rates. For folks on [...]

We’ve made our support for higher capital requirements no secret on Rent Check. But just how high should capital requirements be is an open question. Our financial system as it [...]

1. Janet Yellen concerned about loose lending standards in the financial system. 2. Credit and business cycles. 3. Financial openness, economic growth, and macroprudential regulation.

A growing number of economic studies confirm an important truth about the relationship between the financial sector and the “real” economy: a healthy financial sector is necessary for economic growth, [...]