Bank Business Models and the Basel System: Complexity and Interconnectedness

The main hallmarks of the global financial crisis were too-big-to-fail institutions taking on too much risk with other people’s money: excess leverage and default pressure resulting from contagion and counterparty risk. This paper looks at whether the Basel III reforms address these issues effectively and proposes improvements to the current reform proposals.

Capital Controls on Inflows, the Global Financial Crisis and Economic Growth: Evidence for Emerging Economies

This paper investigates whether countries that had controls on inflows in place prior to the crisis were less vulnerable during the global financial crisis. More generally, it examines economic growth effects of such controls over the entire economic cycle, finding that capital restrictions on inflows (particularly debt liabilities) may be useful in good times but may have adverse effects in a crisis.

Macro-prudential Policy, Bank Systemic Risk and Capital Controls

This paper looks at macro-prudential policies in the light of empirical evidence on the determinants of bank systemic risk, and the effectiveness of capital controls. It concludes that complexity and interdependence is such that care should be taken in implementing macro-prudential policies until much more is understood about these issues.

Bank Business Models and the Separation Issue

The bank regulator's paradox is that large, complex and interconnected banks need very little capital in the good times, but they can never have enough in an extreme crisis. Separation is required to deal with this problem, which derives mainly from counterparty risk. This paper outlines the OECD’s separation proposal and also compares it to current national approaches to separation.

Adrian Blundell-Wignall - FR

Adrian Blundell-Wignall est le Conseiller spécial des marchés financiers au Cabinet du Secrétaire général et le Directeur adjoint, Direction des affaires financières et des entreprises, Organisation de coopération et de développement économiques.

Also Available

• Adrian Blundell-Wignall

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Sound debt management allows African policymakers to develop local-currency bond markets, integrate into a worldwide network of debt managers, and to enhance awareness of advances in Africa among policymakers, investors and others outside the continent.

Africa: Central government debt statistics

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Pension Markets in Focus

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Global Pension Statistics

This project measures and monitors the pension industry, allowing inter-country comparisons of current statistics and indicators on key aspects of retirement systems.