Regulation and Stability of Banks in Large-scale Crises: An Historical Approach

• Autores: Elisabeth Paulet
• Localización: Journal of European Economic History, ISSN 0391-5115, Vol. 45, Nº. 1, 2016, págs. 99-118
• Idioma: inglés
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• Resumen

  • The traditional debate on the effect of regulation on banks’ business model has gained renewed attention today. The historical evidence suggests that the constraints imposed on banks after a crisis must be carefully calibrated in order to allow them to optimise profitability and to secure their assets.

    This paper discusses the influence of regulations and stability ratios on banks’ business model during large-scale crises. Examining the situation both pre- and post-crisis serves for more detailed study of the efficiency of regulatory requirements. The analytical intent is to determine the most efficient ways to restore financial stability. In other words, the question is the extent to which the stability ratios must be internalized by banking institutions in order to prevent financial instability