Macro Prudential Policies from a Micro Prudential Angle
The standard macro(prudential) models focus on externalities and treat all prudential instruments as alternative, but equivalent, forms of Pigouvian taxes. This paper explicitly models individual banks' risk choices and shows that different prudential instruments affect banks' risk-taking incentives differently. Thus, conflicts may arise between the micro and macro prudential stance.
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dig-okr-10986169372024-08-08T14:13:14Z Macro Prudential Policies from a Micro Prudential Angle Cordella, Tito Pienknagura, Samuel AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation The standard macro(prudential) models focus on externalities and treat all prudential instruments as alternative, but equivalent, forms of Pigouvian taxes. This paper explicitly models individual banks' risk choices and shows that different prudential instruments affect banks' risk-taking incentives differently. Thus, conflicts may arise between the micro and macro prudential stance. 2014-02-05T18:50:06Z 2014-02-05T18:50:06Z 2013-12 http://documents.worldbank.org/curated/en/2013/12/18634314/macro-prudential-policies-micro-prudential-angle https://hdl.handle.net/10986/16937 English en_US Policy Research Working Paper;No. 6721 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation |
| spellingShingle |
AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation Cordella, Tito Pienknagura, Samuel Macro Prudential Policies from a Micro Prudential Angle |
| description |
The standard macro(prudential) models
focus on externalities and treat all prudential instruments
as alternative, but equivalent, forms of Pigouvian taxes.
This paper explicitly models individual banks' risk
choices and shows that different prudential instruments
affect banks' risk-taking incentives differently. Thus,
conflicts may arise between the micro and macro prudential stance. |
| topic_facet |
AGENCY PROBLEMS BANK BAILOUTS BANK DIRECTOR BANK LIQUIDITY BANK RISK BANK RISK TAKING BANK RISK-TAKING BANKS BORROWING BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL REGULATION CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE COST OF CAPITAL CREDIT INCREASES DEBT DEFAULT RISK DEMAND CURVE DEMAND DEPOSITS DEMAND FOR CREDIT DEPOSIT DEPOSITORS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC PERFORMANCE ECONOMIC THEORY EUROPEAN CENTRAL BANK EXCESSIVE RISK EXTERNAL LIABILITIES EXTERNALITIES EXTERNALITY FINANCIAL CRISES FINANCIAL FRAGILITY FINANCIAL INNOVATION FINANCIAL INTERMEDIATION FINANCIAL REGULATION FORM OF COLLATERAL INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LEVELS OF RISK LEVERAGE LEVY LIABILITY LIABILITY STRUCTURE LIQUIDITY REQUIREMENTS LIQUIDITY RISK LOAN MACROECONOMIC MODELS MARKET POWER MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MORAL HAZARD NEGATIVE EXTERNALITIES OBLIGATIONS TO DEPOSITORS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS PRUDENTIAL REGULATION REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RETURNS RISK CHOICES RISK TAKING RISK-TAKING INCENTIVES SYSTEMIC RISK TAX TAX ON DEPOSITS TAXATION macroprudential regulation microprudential regulation |
| author |
Cordella, Tito Pienknagura, Samuel |
| author_facet |
Cordella, Tito Pienknagura, Samuel |
| author_sort |
Cordella, Tito |
| title |
Macro Prudential Policies from a Micro Prudential Angle |
| title_short |
Macro Prudential Policies from a Micro Prudential Angle |
| title_full |
Macro Prudential Policies from a Micro Prudential Angle |
| title_fullStr |
Macro Prudential Policies from a Micro Prudential Angle |
| title_full_unstemmed |
Macro Prudential Policies from a Micro Prudential Angle |
| title_sort |
macro prudential policies from a micro prudential angle |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013-12 |
| url |
http://documents.worldbank.org/curated/en/2013/12/18634314/macro-prudential-policies-micro-prudential-angle https://hdl.handle.net/10986/16937 |
| work_keys_str_mv |
AT cordellatito macroprudentialpoliciesfromamicroprudentialangle AT pienknagurasamuel macroprudentialpoliciesfromamicroprudentialangle |
| _version_ |
1807160074271981568 |