Arbeitspapier
Supervising financial regulators
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly. Still, output net of default costs across the banking union is highest when local regulators are rewarded rather than punished. Regulators with lower current lending receive more discretion to allow higher lending in the future, but regulators with higher current lending may not experience any limit to their discretion.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Canada Staff Working Paper ; No. 2016-52
- Classification
-
Wirtschaft
Financial Markets and the Macroeconomy
Financial Institutions and Services: Government Policy and Regulation
- Subject
-
Credit and credit aggregates
Financial stability
Financial systems regulation and policies
Regional economic developments
- Event
-
Geistige Schöpfung
- (who)
-
Schroth, Josef
- Event
-
Veröffentlichung
- (who)
-
Bank of Canada
- (where)
-
Ottawa
- (when)
-
2016
- DOI
-
doi:10.34989/swp-2016-52
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schroth, Josef
- Bank of Canada
Time of origin
- 2016
Other Objects (12)
Financial development beyond the formal financial market
Financial crisis interventions
Financial crisis resolution
Financial frictions, financial shocks and labour market fluctuations in Canada
Financial factors and labour market fluctuations
Canadian financial stress and macroeconomic conditions
International business cycles and financial frictions
Household Stockholding Behavior During the Great Financial Crisis
Non-bank financial intermediation in Canada: An update
Monetary policy transmission during financial crises: An empirical analysis
Assembling a real-financial micro-dataset for Canadian households
Capital requirement and financial frictions in banking: Macroeconomic implications
Financial development beyond the formal financial market
Financial crisis interventions
Financial crisis resolution
Financial frictions, financial shocks and labour market fluctuations in Canada
Financial factors and labour market fluctuations
Canadian financial stress and macroeconomic conditions
International business cycles and financial frictions
Household Stockholding Behavior During the Great Financial Crisis
Non-bank financial intermediation in Canada: An update
Monetary policy transmission during financial crises: An empirical analysis
Assembling a real-financial micro-dataset for Canadian households
Capital requirement and financial frictions in banking: Macroeconomic implications
Financial development beyond the formal financial market
Financial crisis interventions
Financial crisis resolution
Financial frictions, financial shocks and labour market fluctuations in Canada
Financial factors and labour market fluctuations
Canadian financial stress and macroeconomic conditions
International business cycles and financial frictions
Household Stockholding Behavior During the Great Financial Crisis
Non-bank financial intermediation in Canada: An update
Monetary policy transmission during financial crises: An empirical analysis
Assembling a real-financial micro-dataset for Canadian households