Imperial College London

Professor Franklin Allen

Business School

Executive Director of the Brevan Howard Centre
 
 
 
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Contact

 

+44 (0)20 7594 9195f.allen Website CV

 
 
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Location

 

2.05B52-53 Prince's GateSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@article{Allen:2018:10.1007/s10693-018-0291-z,
author = {Allen, HF and Goldstein, I and Jagtiani, J},
doi = {10.1007/s10693-018-0291-z},
journal = {Journal of Financial Services Research},
pages = {141--162},
title = {The interplay between financial regulations, resilience, and growth},
url = {http://dx.doi.org/10.1007/s10693-018-0291-z},
volume = {53},
year = {2018}
}

RIS format (EndNote, RefMan)

TY  - JOUR
AB - Interconnectedness has been an important source of market failures, leading to the recent financial crisis. Large financial institutions tend to have similar exposures and thus exert externalities on each other through various mechanisms. Regulators have responded by putting in place more regulations with many layers of regulatory complexity, leading to ambiguity and market manipulation. Mispricing risk in complex models and the arbitrage opportunities through the regulatory loopholes have provided incentives for certain activities to be more concentrated in the regulated entities and for other activities to leave the banking into new shadow banking areas. How can we design an effective regulatory framework that would perfectly rule out bank runs and TBTF and to do so without introducing incentives for financial firms to take excessive risk? It is important for financial regulations to be coordinated across regulatory entities and jurisdictions and for financial regulations to be forward looking, rather than aiming to address problems of the past.
AU - Allen,HF
AU - Goldstein,I
AU - Jagtiani,J
DO - 10.1007/s10693-018-0291-z
EP - 162
PY - 2018///
SN - 0920-8550
SP - 141
TI - The interplay between financial regulations, resilience, and growth
T2 - Journal of Financial Services Research
UR - http://dx.doi.org/10.1007/s10693-018-0291-z
UR - http://hdl.handle.net/10044/1/57848
VL - 53
ER -