Regulation and Differences in Financial Institutions

Financial innovation and the management and regulation of financial institutions

New security designs, improvements in computer and telecommunications technology and advances in the theory of finance have led to revolutionary changes in the structure of financial markets and institutions. This paper provides a functional perspective on the dynamics of institutional change and uses a series of examples to illustrate the breadth and depth of institutional change that is likel...

Electronic Services (IT) in the Banking and Financial Institutions

This research investigates the methods for improving the quality of IT services (electronic services) in the Melli Banks branches in Mashhad province, where QFD and ANP models were operated. To this concern, three-dimensional, usability, service interaction and information quality to improve IT service quality were examined. The results of the analysis of the opinion of Melli Bank Customers ind...

Law, Institutions and Taxes: Optimal Regulation and the Financial Crisis

Calls for tighter regulation of financial innovations are gathering momentum in the wake of the financial crisis. In a setting where corporate innovation imposes positive and negative externalities, the social impact of corporations depends on the sharing rule between the owners of a corporation and the non-financial claimants. We examine the role of law, regulation and institutions in altering...

Major Issues in the Regulation of Financial Institutions

A New Capital Regulation for Large Financial Institutions

We design a new, implementable capital requirement for large financial institutions (LFIs) that are too big to fail. Our mechanism mimics the operation of margin accounts. To ensure that LFIs do not default on either their deposits or their derivative contracts, we require that they maintain a capital cushion sufficiently great that their own credit default swap price stays below a threshold le...