Capital adequacy regulation and financial conglomerates

Arbeitspapier

A topical concern in public-policy debate is that the current capital adequacy regulation designed for stand-alone financial institutions exhibits several weaknesses due to the emergence of large financial institutions combining several activities under common control.This paper addresses these concerns using a theoretical framework derived from the economic literature.I will first describe the possible causes of the emergence of financial conglomerates, proceed to consider the theoretical background for the regulation of financial institutions, especially insurance and banking companies, and, finally, examine the limitations of the current regulatory framework in controlling the risks in financial conglomerates.My conclusions provide little support for the view that the regulatory approach should be modified towards a more consolidated one (ie harmonization).

Object Details

• ISBN: 952-462-134-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Finland Discussion Papers ; No. 10/2004

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Insurance; Insurance Companies; Actuarial Studies ; Financial Institutions and Services: Government Policy and Regulation
• Subject: banking ; capital adequacy regulation ; insurance ; financial conglomerates

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mälkönen, Ville
• Event: Veröffentlichung
• (who): Bank of Finland
• (where): Helsinki
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/211978
• Last update: 10.03.2025, 11:42 AM CET