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How is Banking Regulation Changing, and How Could it be Better?
Author(s) -
Lilico Andrew
Publication year - 2012
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2012.02167.x
Subject(s) - market liquidity , financial system , business , capital (architecture) , monetary economics , bank failure , bank run , government (linguistics) , finance , economics , linguistics , philosophy , archaeology , history
Since the financial crisis there have been some positive moves with regard to bank regulation – especially in relation to ensuring that bank bondholders can lose their capital in the event of a bank failure. However, the increased guarantees to depositors are a retrograde step. The government should remove guarantees of depositors’ capital and, instead, provide some guarantee of their liquidity.