Regulating and Combating Underground Banking

Regulating and Combating Underground Banking

In combating and regulating underground banking, a choice can be made of roughly two models, the risk model and the assimilation model. The risk model comes down to a complete prohibition of underground banking combined with an active investigation and prosecution policy. In the assimilation model, underground banking is recognised as a form of financial services but at the same time, all rules...

Regulating the underground injection of CO2.

W hen the U.S. finally gets serious about climate change, it will have to reduce emissions of CO 2 by more than a factor of two during this century in order to do its part in stabilizing atmospheric concentrations (1). CO 2 capture and disposal is among the most important supply-side technologies for managing the carbon problem. This technology could enable continued access to fossil energy whi...

Regulating the Shadow Banking System [with Comments and Discussion]

The shadow banking system played a major role in the recent financial crisis but remains largely unregulated. We propose principles for its regulation and describe a specific proposal to implement those principles. We document how the rise of shadow banking was helped by regulatory and legal changes that gave advantages to three main institutions: money-market mutual funds (MMMFs) to capture re...

Banking and Shadow Banking

Tightening financial regulation squeezes banking activities into the shadow banking sector, which may hurt financial stability and production (Plantin, 2014). Unlike Plantin’s work, we investigate regulations that reduce banks’ leverage and dampen financial amplification effects. Moreover, our paper studies the trade-off between economic growth and financial stability in light of shadow banking...

Underground Economy And Tax Gap