Four Essays on Banking Regulation and Monetary Policy
The global financial crisis in 2007-2009 exposed the absence of adequate regulation within the banking sector which had built up an excessive amount of on- and off-balance sheet leverage and had neglected basic principles of liquidity risk management (Acharya and Richardson, 2009, Adrian and Shin, 2010, Goodhart, 2008). As a response, the Basel Committee on Banking Supervision presented a revised and augmented regulatory framework. Since the financial crisis had demonstrated that microprudential regulation is not sufficient in safeguarding financial stability, the regulators put an emphasizes on macroprudential policies to improve the resilience of the financial sector. Key reforms in this respect are the tightening of capital requirements and the introduction of uniform liquidity requirements (BCBS, 2010).
