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:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

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

Format:

Paper

Pages:

27

Please address any questions about this title to publications@imf.org