Regulatory regimes and bank behavior

Regulatory regimes and state cost containment programs.

Pride and Regulatory Behavior

Prior research has demonstrated that while people experience pride after an accomplishment, its experience can both encourage and discourage subsequent regulatory behavior. The current research shows that this seemingly contradictory influence can be accounted for by considering the information about the event that generated the pride (i.e., appraisal information) and whether or not a self-regu...

Formal Enforcement Actions and Bank Behavior

Employing a unique data set for the period 2000-2010, this paper examines the impact of formal enforcement actions targeting the core of the banks’ financial safety and soundness in terms of bank capital, risk, and performance. We find that, on average, these actions reduce both the risk-weighted assets and the non-performing loans ratios of punished banks, but there is no increase in the level...

Endogenous credit derivatives and bank behavior

Instruments for credit risk transfer arise endogenously from and interact with optimizing behavior of their users. This is particularly true with credit derivatives which are usually OTC contracts between banks as buyers and sellers of credit risk. Recent literature, however, does not account for this fact when analyzing the effects of these instruments on banking. The present paper closes this...

Constructing and contesting legitimacy and accountability in polycentric regulatory regimes

The legitimacy and accountability of polycentric regulatory regimes, particularly at the transnational level, has been severely criticized, and the search is on to find ways in which they can be enhanced. This paper argues that before developing even more proposals, we need to pay far greater attention to the dynamics of accountability and legitimacy relationships, and to how those in regulator...