Creating a Safer Financial System : Will the Volcker, Vickers, and Liikanen Structural Measures Help?

Author/Editor:

José Vinãls ; Ceyla Pazarbasioglu ; Jay Surti ; Aditya Narain ; Michaela Erbenova ; Julian T Chow

Publication Date:

May 14, 2013

Electronic Access:

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Summary:

The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.

Series:

Staff Discussion Notes No. 13/4

Subject:

English

Publication Date:

May 14, 2013

ISBN/ISSN:

9781484340943/2221-030X

Stock No:

SDNEA2013004

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

27

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