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A Model of Self-Regulation in Banking Industry

Aboura, Sofiane; Lépinette, Emmanuel (2014-02), A Model of Self-Regulation in Banking Industry. https://basepub.dauphine.fr/handle/123456789/13804

Type
Document de travail / Working paper
External document link
http://dx.doi.org/10.2139/ssrn.2392778
Date
2014-02
Pages
11
Metadata
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Author(s)
Aboura, Sofiane
Dauphine Recherches en Management [DRM]
Lépinette, Emmanuel
Passau University
Abstract (EN)
This article derives a model of self-regulation where banks issue insurance products to hedge their leverage ratio. This approach is an alternative policy to Basel regulation for controlling systemic risk without increasing equity level. We show some conditions under which the model can be applied to each of the 22 banks of 5 major countries from 2005 to 2012.
Subjects / Keywords
Self-regulation; Banking regulation; Systemic risk; Insurance
JEL
E44 - Financial Markets and the Macroeconomy
E58 - Central Banks and Their Policies
G01 - Financial Crises
G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
G28 - Government Policy and Regulation