Creating a Safer Financial System: Will the Volcker, Vickers, and Liikanen Structural Measures Help?
( IMF Staff Discussion Notes )
Publication series ： IMF Staff Discussion Notes
Author： José Vinãls Ceyla Pazarbasioglu Jay Surti Aditya Narain Mrs. Michaela Erbenova Mr. Julian T. S. Chow
Publisher： INTERNATIONAL MONETARY FUND
Publication year： 2013
E-ISBN: 9781484345528
Subject： F0 Economics;F8 Finances
Language： ENG
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Description
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.