TY - BOOK
T1 - Bank Liquidity and the Global Financial Crisis. The Causes and Implications of Regulatory Reform.
AU - Chiaramonte, Laura
PY - 2018
Y1 - 2018
N2 - One of the lessons learned from the Global Financial Crisis of 2007–9 is that minimum capital requirements are a necessary but inadequate safeguard for the stability of an intermediary. Despite the high levels of capitalization of many banks before the crisis, they too experienced serious difficulties due to insufficient liquidity buffers. Thus, for the first time, after the GFC regulators realized that liquidity risk can jeopardize the orderly functioning of a bank and, in some cases, its survival. Previously, the risk did not receive the same attention by regulators at the international level as other types of risk including credit, market, and operational risks. The GFC promoted liquidity risk to a significant place in regulatory reform, introducing uniform international rules and best practices. The literature has studied the potential effects of the new liquidity rules on the behaviour of banks, the financial system and the economy as a whole.
The book provides a comprehensive understanding of the bank liquidity crisis that occurred during the GFC, of the liquidity regulatory reform introduced by the Basel Committee with the Basel III Accord, and its implications both at the micro and macroeconomic levels.
AB - One of the lessons learned from the Global Financial Crisis of 2007–9 is that minimum capital requirements are a necessary but inadequate safeguard for the stability of an intermediary. Despite the high levels of capitalization of many banks before the crisis, they too experienced serious difficulties due to insufficient liquidity buffers. Thus, for the first time, after the GFC regulators realized that liquidity risk can jeopardize the orderly functioning of a bank and, in some cases, its survival. Previously, the risk did not receive the same attention by regulators at the international level as other types of risk including credit, market, and operational risks. The GFC promoted liquidity risk to a significant place in regulatory reform, introducing uniform international rules and best practices. The literature has studied the potential effects of the new liquidity rules on the behaviour of banks, the financial system and the economy as a whole.
The book provides a comprehensive understanding of the bank liquidity crisis that occurred during the GFC, of the liquidity regulatory reform introduced by the Basel Committee with the Basel III Accord, and its implications both at the micro and macroeconomic levels.
KW - Bank Liquidity
KW - Global Financial Crisis
KW - Liquidity Risk
KW - Bank Liquidity
KW - Global Financial Crisis
KW - Liquidity Risk
UR - http://hdl.handle.net/10807/124093
U2 - 10.1007/978-3-319-94400-5
DO - 10.1007/978-3-319-94400-5
M3 - Book
SN - 9783319943992
BT - Bank Liquidity and the Global Financial Crisis. The Causes and Implications of Regulatory Reform.
PB - Palgrave Macmillan
ER -