Structured finance influence on financial market stability : evaluation of current regulatory developments

• Autorzy: Sebastian A. Schuetz
• Języki publikacji: EN

Abstrakty

EN

In 2007 the world faced one of the biggest financial crises ever. It was the third important financial crisis in the last 12 years. Spillovers to the real economy and moral hazard behaviour of carpetbaggers resulted in enormous pressure on worldwide political institutions to approve a more rigorous regulation on financial institutions and predict financial crises via early warning systems. We analysed the performance of structured finance ratings and structured finance issuance/outstanding to detect the main shortcomings of the subprime crisis. Afterwards we explain the behaviour of market participants with theoretical models and a survey of institutions involved in securitisation. With the conclusions of this analysis we evaluate the EU regulation on credit rating agencies and current Basel II enhancements. Finally, we can determine that most regulatory enhancements are in accordance with our analysed shortcomings. Some approaches like the introduction of a leverage ratio are counterproductive and a danger for worldwide economic growth. (original abstract)

Słowa kluczowe

EN

Financial sustainability; Financial markets; Economic regulations; Financial crisis; Subprime crisis

PL

Stabilność finansowa; Rynki finansowe; Regulacja ekonomiczna; Kryzys finansowy; Kryzys subprime

• Czasopismo: Journal of Management and Financial Sciences
• Rocznik: 2011
• Tom: 4
• Numer: nr 5
• Strony: 92--118

Twórcy

autor

Sebastian A. Schuetz

• Leuphana Universität Lüneburg, Germany

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