Principles of Financial Regulation : A Dynamic Portfolio Approach
Economists seeking explanations for the global financial crisis of 1997-99 are reaching consensus that a major factor was weak financial institutions, which resulted in part from inadequate government regulations. At the same time many developing c...
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| Format: | Journal Article |
| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/01/17591975/principles-financial-regulation-dynamic-portfolio-approach http://hdl.handle.net/10986/17126 |
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okr-10986-17126 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT ADVERSE EFFECTS AMOUNT OF CREDIT ARBITRAGE ASSET BASE ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICES ASSET RESOLUTION ASSET VALUES ASSETS ASYMMETRIC INFORMATION BAD ASSETS BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCOUNTS BANK FAILURES BANK INSOLVENCIES BANK LENDING BANK OWNERS BANK PORTFOLIO BANK REGULATION BANK RESTRUCTURING BANKING CRISES BANKING SYSTEM BANKING SYSTEMS BANKRUPT BANKRUPTCIES BANKRUPTCY BANKRUPTCY LAW BANKS BIASES BOND BOOK VALUE BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL ADEQUACY REQUIREMENTS CAPITAL BASE CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOW CENTRAL BANK CENTRAL BANKING CIVIL WAR COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS CONNECTED LENDING CORPORATE BANKRUPTCIES CREDIT CONSTRAINTS CREDIT CRUNCH CREDITOR CRIMINAL PENALTIES DEBTOR DEBTOR RIGHTS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SYSTEM DEPOSIT RATE DEPOSIT RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DERIVATIVE DEVALUATION DEVELOPING COUNTRIES DIRECTED CREDIT DIVERSIFICATION DIVIDENDS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ENTREPRENEURS EQUITIES EQUITY CAPITAL EVENT OF BANKRUPTCY EXPLICIT DEPOSIT INSURANCE EXPOSURE TO RISK EXTERNALITIES FEDERAL RESERVE FIDUCIARY RESPONSIBILITIES FINANCIAL ACCOUNTING FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL POSITION FINANCIAL REGULATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FINANCIAL WEAKNESSES FLOW OF CREDIT FORBEARANCE FOREIGN BANKS FOREIGN CURRENCY FREE MARKETS GAMBLING GOVERNMENT BONDS GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REGULATIONS HIDDEN SUBSIDY HIGH INTEREST RATE HIGH INTEREST RATES HOLDINGS HUMAN RESOURCES IMPLICIT GUARANTEE INCOME INFLATION INFORMATION ASYMMETRIES INSIDER LENDING INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT CAPITAL JUDGMENT LAND SPECULATION LAND VALUES LEGAL ENVIRONMENT LENDER LENDERS LEVERAGE LIABILITY LIQUIDITY LOAN LOAN PORTFOLIOS LONG-TERM INTEREST LONG-TERM INTEREST RATES LOW INTEREST RATES MACROECONOMIC POLICY MARK TO MARKET MARKET DISCIPLINE MARKET ECONOMIES MARKET FAILURES MARKET REGULATION MARKET RISK MARKET VALUE MONETARY CLAIMS MONETARY FUND MONETARY POLICY MORAL HAZARD MORTGAGE MORTGAGE REGULATIONS NATIONAL BUDGETS NET VALUE NET WORTH NEW ENTRANTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMANCE NONPERFORMING LOANS PARTICULAR ASSET PENALTIES PORTFOLIO PRIVATE BANKS PROBLEM BANKS PRUDENTIAL REGULATION PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC POLICY RATING AGENCIES REAL ESTATE REAL ESTATE ASSETS REAL ESTATE LOANS RECESSION REGULATORS REGULATORY AUTHORITIES REGULATORY CAPACITIES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY POLICIES REGULATORY REFORM REGULATORY REGIME REGULATORY REGIMES REGULATORY STRUCTURE RESERVES RETURN RETURNS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK OF DEFAULT RISK PREMIUM RISK SHARING RISK TAKING SAVINGS SOLVENCY SOURCES OF FUNDS STATE BANKS SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC CRISIS TRANCHE TRANSACTION TRANSFER PAYMENT TRANSITION ECONOMIES TRANSPARENCY TRANSPARENT SYSTEMS TREASURY TREASURY BILLS TRUST CORPORATION USE OF DERIVATIVES VALUATION WORKOUT |
| spellingShingle |
ACCESS TO CREDIT ADVERSE EFFECTS AMOUNT OF CREDIT ARBITRAGE ASSET BASE ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICES ASSET RESOLUTION ASSET VALUES ASSETS ASYMMETRIC INFORMATION BAD ASSETS BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCOUNTS BANK FAILURES BANK INSOLVENCIES BANK LENDING BANK OWNERS BANK PORTFOLIO BANK REGULATION BANK RESTRUCTURING BANKING CRISES BANKING SYSTEM BANKING SYSTEMS BANKRUPT BANKRUPTCIES BANKRUPTCY BANKRUPTCY LAW BANKS BIASES BOND BOOK VALUE BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL ADEQUACY REQUIREMENTS CAPITAL BASE CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOW CENTRAL BANK CENTRAL BANKING CIVIL WAR COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS CONNECTED LENDING CORPORATE BANKRUPTCIES CREDIT CONSTRAINTS CREDIT CRUNCH CREDITOR CRIMINAL PENALTIES DEBTOR DEBTOR RIGHTS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SYSTEM DEPOSIT RATE DEPOSIT RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DERIVATIVE DEVALUATION DEVELOPING COUNTRIES DIRECTED CREDIT DIVERSIFICATION DIVIDENDS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ENTREPRENEURS EQUITIES EQUITY CAPITAL EVENT OF BANKRUPTCY EXPLICIT DEPOSIT INSURANCE EXPOSURE TO RISK EXTERNALITIES FEDERAL RESERVE FIDUCIARY RESPONSIBILITIES FINANCIAL ACCOUNTING FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL POSITION FINANCIAL REGULATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FINANCIAL WEAKNESSES FLOW OF CREDIT FORBEARANCE FOREIGN BANKS FOREIGN CURRENCY FREE MARKETS GAMBLING GOVERNMENT BONDS GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REGULATIONS HIDDEN SUBSIDY HIGH INTEREST RATE HIGH INTEREST RATES HOLDINGS HUMAN RESOURCES IMPLICIT GUARANTEE INCOME INFLATION INFORMATION ASYMMETRIES INSIDER LENDING INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT CAPITAL JUDGMENT LAND SPECULATION LAND VALUES LEGAL ENVIRONMENT LENDER LENDERS LEVERAGE LIABILITY LIQUIDITY LOAN LOAN PORTFOLIOS LONG-TERM INTEREST LONG-TERM INTEREST RATES LOW INTEREST RATES MACROECONOMIC POLICY MARK TO MARKET MARKET DISCIPLINE MARKET ECONOMIES MARKET FAILURES MARKET REGULATION MARKET RISK MARKET VALUE MONETARY CLAIMS MONETARY FUND MONETARY POLICY MORAL HAZARD MORTGAGE MORTGAGE REGULATIONS NATIONAL BUDGETS NET VALUE NET WORTH NEW ENTRANTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMANCE NONPERFORMING LOANS PARTICULAR ASSET PENALTIES PORTFOLIO PRIVATE BANKS PROBLEM BANKS PRUDENTIAL REGULATION PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC POLICY RATING AGENCIES REAL ESTATE REAL ESTATE ASSETS REAL ESTATE LOANS RECESSION REGULATORS REGULATORY AUTHORITIES REGULATORY CAPACITIES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY POLICIES REGULATORY REFORM REGULATORY REGIME REGULATORY REGIMES REGULATORY STRUCTURE RESERVES RETURN RETURNS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK OF DEFAULT RISK PREMIUM RISK SHARING RISK TAKING SAVINGS SOLVENCY SOURCES OF FUNDS STATE BANKS SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC CRISIS TRANCHE TRANSACTION TRANSFER PAYMENT TRANSITION ECONOMIES TRANSPARENCY TRANSPARENT SYSTEMS TREASURY TREASURY BILLS TRUST CORPORATION USE OF DERIVATIVES VALUATION WORKOUT Stiglitz, Joseph E. Principles of Financial Regulation : A Dynamic Portfolio Approach |
| description |
Economists seeking explanations for the
global financial crisis of 1997-99 are reaching consensus
that a major factor was weak financial institutions, which
resulted in part from inadequate government regulations. At
the same time many developing countries are struggling with
an overregulated financial system-one that stifles
innovation and the flow of credit to new entrepreneurs and
that can stunt the growth of well-established firms. In
particular, too many countries are relying excessively on
capital adequacy standards, which are inefficient and
sometimes counterproductive. The author argues that
financial systems can be reformed successfully using a
'dynamic portfolio approach' aimed at managing the
incentives and constraints that affect not only financial
institutions exposure to risk but also their ability to cope
with it. The article sets out general principles of
financial regulation and shows how the dynamic portfolio
approach can help countries deal with the special problems
that arise during the transition to a more liberalized
economy as well as those that arise in dealing with a
financial crisis similar to the 1997 crisis in East Asia. |
| format |
Journal Article |
| author |
Stiglitz, Joseph E. |
| author_facet |
Stiglitz, Joseph E. |
| author_sort |
Stiglitz, Joseph E. |
| title |
Principles of Financial Regulation : A Dynamic Portfolio Approach |
| title_short |
Principles of Financial Regulation : A Dynamic Portfolio Approach |
| title_full |
Principles of Financial Regulation : A Dynamic Portfolio Approach |
| title_fullStr |
Principles of Financial Regulation : A Dynamic Portfolio Approach |
| title_full_unstemmed |
Principles of Financial Regulation : A Dynamic Portfolio Approach |
| title_sort |
principles of financial regulation : a dynamic portfolio approach |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/01/17591975/principles-financial-regulation-dynamic-portfolio-approach http://hdl.handle.net/10986/17126 |
| _version_ |
1764433456833495040 |
| spelling |
okr-10986-171262021-04-23T14:03:29Z Principles of Financial Regulation : A Dynamic Portfolio Approach Stiglitz, Joseph E. ACCESS TO CREDIT ADVERSE EFFECTS AMOUNT OF CREDIT ARBITRAGE ASSET BASE ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICES ASSET RESOLUTION ASSET VALUES ASSETS ASYMMETRIC INFORMATION BAD ASSETS BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCOUNTS BANK FAILURES BANK INSOLVENCIES BANK LENDING BANK OWNERS BANK PORTFOLIO BANK REGULATION BANK RESTRUCTURING BANKING CRISES BANKING SYSTEM BANKING SYSTEMS BANKRUPT BANKRUPTCIES BANKRUPTCY BANKRUPTCY LAW BANKS BIASES BOND BOOK VALUE BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL ADEQUACY REQUIREMENTS CAPITAL BASE CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOW CENTRAL BANK CENTRAL BANKING CIVIL WAR COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS CONNECTED LENDING CORPORATE BANKRUPTCIES CREDIT CONSTRAINTS CREDIT CRUNCH CREDITOR CRIMINAL PENALTIES DEBTOR DEBTOR RIGHTS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE SYSTEM DEPOSIT RATE DEPOSIT RATES DEPOSITOR DEPOSITORS DEPOSITS DEREGULATION DERIVATIVE DEVALUATION DEVELOPING COUNTRIES DIRECTED CREDIT DIVERSIFICATION DIVIDENDS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ENTREPRENEURS EQUITIES EQUITY CAPITAL EVENT OF BANKRUPTCY EXPLICIT DEPOSIT INSURANCE EXPOSURE TO RISK EXTERNALITIES FEDERAL RESERVE FIDUCIARY RESPONSIBILITIES FINANCIAL ACCOUNTING FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL POSITION FINANCIAL REGULATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FINANCIAL WEAKNESSES FLOW OF CREDIT FORBEARANCE FOREIGN BANKS FOREIGN CURRENCY FREE MARKETS GAMBLING GOVERNMENT BONDS GOVERNMENT INTERVENTION GOVERNMENT REGULATION GOVERNMENT REGULATIONS HIDDEN SUBSIDY HIGH INTEREST RATE HIGH INTEREST RATES HOLDINGS HUMAN RESOURCES IMPLICIT GUARANTEE INCOME INFLATION INFORMATION ASYMMETRIES INSIDER LENDING INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INVESTMENT CAPITAL JUDGMENT LAND SPECULATION LAND VALUES LEGAL ENVIRONMENT LENDER LENDERS LEVERAGE LIABILITY LIQUIDITY LOAN LOAN PORTFOLIOS LONG-TERM INTEREST LONG-TERM INTEREST RATES LOW INTEREST RATES MACROECONOMIC POLICY MARK TO MARKET MARKET DISCIPLINE MARKET ECONOMIES MARKET FAILURES MARKET REGULATION MARKET RISK MARKET VALUE MONETARY CLAIMS MONETARY FUND MONETARY POLICY MORAL HAZARD MORTGAGE MORTGAGE REGULATIONS NATIONAL BUDGETS NET VALUE NET WORTH NEW ENTRANTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMANCE NONPERFORMING LOANS PARTICULAR ASSET PENALTIES PORTFOLIO PRIVATE BANKS PROBLEM BANKS PRUDENTIAL REGULATION PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC POLICY RATING AGENCIES REAL ESTATE REAL ESTATE ASSETS REAL ESTATE LOANS RECESSION REGULATORS REGULATORY AUTHORITIES REGULATORY CAPACITIES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY POLICIES REGULATORY REFORM REGULATORY REGIME REGULATORY REGIMES REGULATORY STRUCTURE RESERVES RETURN RETURNS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK OF DEFAULT RISK PREMIUM RISK SHARING RISK TAKING SAVINGS SOLVENCY SOURCES OF FUNDS STATE BANKS SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC CRISIS TRANCHE TRANSACTION TRANSFER PAYMENT TRANSITION ECONOMIES TRANSPARENCY TRANSPARENT SYSTEMS TREASURY TREASURY BILLS TRUST CORPORATION USE OF DERIVATIVES VALUATION WORKOUT Economists seeking explanations for the global financial crisis of 1997-99 are reaching consensus that a major factor was weak financial institutions, which resulted in part from inadequate government regulations. At the same time many developing countries are struggling with an overregulated financial system-one that stifles innovation and the flow of credit to new entrepreneurs and that can stunt the growth of well-established firms. In particular, too many countries are relying excessively on capital adequacy standards, which are inefficient and sometimes counterproductive. The author argues that financial systems can be reformed successfully using a 'dynamic portfolio approach' aimed at managing the incentives and constraints that affect not only financial institutions exposure to risk but also their ability to cope with it. The article sets out general principles of financial regulation and shows how the dynamic portfolio approach can help countries deal with the special problems that arise during the transition to a more liberalized economy as well as those that arise in dealing with a financial crisis similar to the 1997 crisis in East Asia. 2014-02-20T22:39:51Z 2014-02-20T22:39:51Z 2001-04 Journal Article http://documents.worldbank.org/curated/en/2001/01/17591975/principles-financial-regulation-dynamic-portfolio-approach World Bank Research Observer http://hdl.handle.net/10986/17126 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Journal Article Publications & Research |