Systemic Risk and Banking Regulation: Some Facts on the New Regulatory Framework

Corporate Ownership & Control / Volume 12, Issue 2, Winter 2015

Posted: 24 Sep 2015

See all articles by Michele Bonollo

Michele Bonollo

IMT Institute for Advanced Studies; Credito Trevigiano

Irene Crimaldi

IMT Institute for Advanced Studies

Andrea Flori

Politecnico di Milano; Department of Management, Economics and Industrial Engineering

Fabio Pammolli

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering; CERM Foundation

Massimo Riccaboni

Independent

Date Written: January 29, 2015

Abstract

The recent financial crisis highlighted the relevant role of the systemic effects of banks’ defaults on the stability of the whole financial system. In this work we draw an organic picture of the current regulations, moving from the definitions of systemic risk to the issues concerning data availability. We show how a more detailed flow of data on traded deals might shed light on some systemic risk features taken into account only partially in the past. In particular, we analyse how the new regulatory framework allows regulators to describe OTC derivatives markets according to more detailed partitions, thus depicting a more realistic picture of the system. Finally, we suggest to study submarkets illiquidity conditions to consider possible spill over effects which might lead to a worsening for the entire system.

Keywords: Systemic Risk, OTC Derivatives Market, Basel Regulations, European Market Infrastructure, Regulation, Trade Repositories

JEL Classification: H61

Suggested Citation

Bonollo, Michele and Crimaldi, Irene and Flori, Andrea and Pammolli, Fabio and Riccaboni, Massimo, Systemic Risk and Banking Regulation: Some Facts on the New Regulatory Framework (January 29, 2015). Corporate Ownership & Control / Volume 12, Issue 2, Winter 2015, Available at SSRN: https://ssrn.com/abstract=2643775

Michele Bonollo

IMT Institute for Advanced Studies ( email )

Complesso San Micheletto
Lucca, 55100
Italy

Credito Trevigiano ( email )

VIa Stazione 3-5
Vedelago, Treviso
Italy

Irene Crimaldi

IMT Institute for Advanced Studies ( email )

Complesso San Micheletto
Lucca, 55100
Italy

Andrea Flori

Politecnico di Milano ( email )

via Lambruschini 4/B
Milano, Italy 20156
Italy

Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4/B - building 26/b
Milano, 20156
Italy

Fabio Pammolli (Contact Author)

Polytechnic University of Milan - Department of Management, Economics and Industrial Engineering ( email )

Via Lambruschini 4C - building 26/A
Milano, 20156
Italy

CERM Foundation ( email )

Via Fiorentina, 1
Siena, Siena 53100
Italy

HOME PAGE: http://www.cermlab.it

Massimo Riccaboni

Independent ( email )

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