Dealing with systemic risk when we measure it badly

While an omniscient regulator would base a bank’s capital requirement upon its contribution to systemic risk, Jon Danielsson shows that a regulator who measures a bank’s contribution to systemic risk badly will find it optimal to use a simple leverage ratio instead.  Jon Danielsson is an economist teaching at the London School of Economics and active in domestic and international policy debates.

Publication

Image courtesy of interviewee

Leave a Reply

Your email address will not be published.

×
You may have unlimited institutional access to Faculti. Many colleges and universities have institutional memberships. If you are affiliated with a subscribing institution, please access this site through your SSO/EZproxy/IP address. This should permit you with unlimited views. However, you will not be able to view non-subscribed to content.

If you are not affiliated with a subscribing institution, you can register for free as an individual and view thousands of insights in our archive today or subscribe for subject access.

In addition, all guest visitors to the Faculti website can view any insight monthly. You have insight(s) remaining for this month.
Copyright © Faculti Media Limited 2022. All rights reserved.
error:

Add the Faculti Web App to your Mobile or Desktop homescreen

Install
×