Global Systemically Important Banks – How to Identify and Regulate Them?
Journal of Economics and Management, Vol. 18, 2014
14 Pages Posted: 28 Mar 2015
Date Written: December 1, 2014
In this paper we investigate the issues of identification and capital regulation of global systemically important banks (G-SIBs). Both issues are fundamental for global financial stability. However, there are many open questions that remain on the political and academic agenda. We underline that the simple ratio-based solution for the identification and regulation of G-SIBs presents many drawbacks and the idea to increase loss absorption capacity may generate new risks that are not covered under the current regulatory framework.
Keywords: bank capital, risk, G-SIB
JEL Classification: G21, G15
Suggested Citation: Suggested Citation