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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
Edited by Kern Alexander, Chair for Law and Finance, University of Zurich, Switzerland and Head of Research in Financial Regulation, Centre for Financial Analysis and Policy, University of Cambridge, UK and Rahul Dhumale, Managing Director, Risk Control, UBS, London, UK
Contents:PrefaceIntroduction PART I: THE STRUCTURE OF FINANCIAL MARKETS AND THE ROLE OF REGULATION1. The Nature of Modern Credit Markets, Banking and Financial Innovation Kern Alexander, John Eatwell and Avinash Persaud2. The Shadow Banking System as a New Source of Financial TurmoilTom Burns3. Ethical Failures in Regulating and Supervising the Pursuit of Safety Net SubsidiesEdward J. KanePART II: BANK CAPITAL ADEQUACY REGULATION AND ITS EFFECT ON BANK BEHAVIOUR4. 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-Ambrós5. Considerations on Developing and Validating Expected Loss (EL) MethodologiesGianluca Riccio6. The Basel Capital Rules and Trade FinanceAndrew CornfordPART III: EUROPEAN FINANCIAL REGULATION AND CRISIS MANAGEMENT7. Some Rules for Cross-border Banks in Europe David G. Mayes8. Transatlantic Convergence of Financial Regulation: A European PerspectiveKlaus R. Ilmonen9. The New Course of EU State Aid Rules during the 2007–09 Financial CrisisCostanza A. Russo 10. Globalisation and the Regulation of FDI: Recent Proposals Ajit Singh PART IV: CENTRAL CLEARING OF DERIVATIVES11. Central Counterparties and DerivativesChryssa Papathanassiou12. The European Regulation of Central Counterparties: Some International ChallengesKern AlexanderPART V: INSTITUTIONS, MARKETS AND CRISIS MANAGEMENT13. Lessons from Japan’s Banking Crisis – 1991 to 2005Mariko Fujii and Masahiro Kawai14. Determinants of Financial Supervision Regimes: Markets, Institutions, Politics, Law or Geography?Donato Masciandaro15. Liquidity Illusions in the Global Financial ArchitectureAnastasia Nesvetailova16. Governance in International Financial Institutions: The Case of the IMFXenia Roduner 17. Foreign IPOs: The Experience of Israeli FirmsIftekhar Hasan and Maya Waisman18. International Regulatory Reform and Financial TaxesKern Alexander and John Eatwell19. Goodbye Neo-liberalism? Contested Policy Responses to Uncertain Consequences of the 2007–09 Financial CrisisDieter Pesendorfer20. Summing Up and the Challenges AheadKern Alexander Index
Jr. Coffee, Rowan Russell, Angela Itzikowitz, Philip R Wood, Kern Alexander, Jesper Lau Hansen, Erica Johansson, Klaus J. Hopt, William Blair, Michael D. Green, Brandon Jones, Ross Cranston, Brigitte Haar, Eiríkur Jónsson