{
  "title": "Assessing the Cost of Financial Regulation",
  "publication": "IMF Working Papers, September 26, 2012",
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  "summary": "This study assesses the overall impact on credit of the financial regulatory reforms in Europe, Japan, and the United States. Long-term cost estimates are provided for Basel III capital and liquidity requirements, derivatives reforms, and higher taxes and fees.",
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    {
      "heading": "Overview",
      "content": "- The study assesses the overall impact on credit of financial regulatory reforms in Europe, Japan, and the United States.\n- Long-term cost estimates are provided for:\n  - Basel III capital and liquidity requirements\n  - Derivatives reforms\n  - Higher taxes and fees"
    },
    {
      "heading": "Major findings",
      "content": "- Overall, average lending rates in the base case would rise by:\n  - 18 bps in Europe\n  - 8 bps in Japan\n  - 28 bps in the United States\n- Cost estimates are lower than those of the IIF due to:\n  - Inclusion of expense cuts\n  - Reductions in the returns required by investors"
    },
    {
      "heading": "Comparisons with other analyses",
      "content": "- Results are similar to:\n  - The official BIS assessments of Basel III\n  - An OECD analysis\n- Results are markedly lower than those of the IIF."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- When evaluating the cost of regulatory reforms, it is important to account for:\n  - Banks’ potential expense reductions\n  - Changes in investor required returns\n- Comparing multiple assessment approaches (BIS, OECD, IIF) highlights sensitivity of cost estimates to modeling assumptions about cost offsets and investor behavior.\n\nSource: Assessing the Cost of Financial Regulation, Douglas Elliott and Andre O Santos, September 26, 2012.\n\n---\n\n Content in this bundle\n\n- wp12233\n  - wp12233 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp12233 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/assessing-the-cost-of-financial-regulation-40021"
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    "Authors: Douglas Elliott, Andre O Santos",
    "Published: September 26, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475510836.001",
    "The study assesses the overall impact on credit of financial regulatory reforms in Europe, Japan, and the United States.",
    "Long-term cost estimates are provided for:",
    "Overall, average lending rates in the base case would rise by:",
    "Cost estimates are lower than those of the IIF due to:",
    "Results are similar to:",
    "Results are markedly lower than those of the IIF.",
    "When evaluating the cost of regulatory reforms, it is important to account for:",
    "Comparing multiple assessment approaches (BIS, OECD, IIF) highlights sensitivity of cost estimates to modeling assumptions about cost offsets and investor behavior.",
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