Macroprudential Risk Management Problems in Brexit

Macroprudential capital requirements and systemic risk

In the aftermath of the financial crisis, there is interest in reforming bank regulation such that capital requirements are more closely linked to a bank’s contribution to the overall risk of the financial system. In our paper we compare alternative mechanisms for allocating the overall risk of a banking system to its member banks. We explicitly take into account that overall risk as well as ea...

Bank Pay Caps, Bank Risk, and Macroprudential Regulation

This paper studies the consequences of a regulatory pay cap in proportion to assets on bank risk, bank value, and bank asset allocations. The cap is shown to lower banks’ risk and raise banks’ values by acting against a competitive externality in the labour market. The risk reduction is achieved without the possibility of reduced lending from a Tier 1 increase. The cap encourages diversificatio...

Brexit and health services.

When is macroprudential policy effective?

Previous studies have shown that limits on loan-to-value (LTV) and debt-to-income (DTI) ratios can stabilise the housing market, and that tightening these limits tends to be more effective than loosening them. This paper examines whether the relative effectiveness of tightening vs. loosening macroprudential measures depends on where in the housing cycle they are implemented. I find that tighten...

Risk Management Plan in Large Urban Projects

One of the risks distinguishes urban projects from other projects is to purchase of property obstacles. The matter is of more significance in large projects. Issues with regard to possessing property obstacles, lack of accurate layout drawings for underground facilities and following probable changes in designs make it vital to have specific studies on risk management of such projects. So thi...