Schedule
Time: We meet every Friday at 11 am ET / 4pm GMT / 5pm CET.
Week 1: History of the Basel Committee, Basel I and II
July 1st, 2016
Format: discussion
Week 2: Conception of Basel III (principles and guidelines)
July 8th, 2016
Aim: Understand in which way Basel III was conceived and whether the rules meet its goal (making banks more resilient to shocks). Understand the theory backing Basel III and the political realities (political compromises)
Format: discussion
References:
- Description of Basel 3: http://www.bis.org/bcbs/basel3.htm
- Literature review on integration of regulatory capital and liquidity instruments: http://www.bis.org/bcbs/publ/wp30.pdf
Week 3: Criticism of Basel III from a micro(prudential) perspective
July 15th, 2016
Aim: Does Basel III make banks effectively more resilient?
Format: speaker + Q&A
References
- Overview given by VoxEU article: http://voxeu.org/article/financial-regulation-not-yet-efficient-outcome
- Criticism by OECD: http://www.oecd.org/finance/financial-markets/45314422.pdf
Week 4: Criticism of Basel III from a macro(prudential) perspective
July 22th, 2016
Aim/question: does Basel III enhance financial stability? to what extent?
Format: speaker + Q&A
References: When micro prudential puts macro prudential at risk?
- Goodhart: http://eprints.lse.ac.uk/64511/1/Linkages%20_between.pdf
- Shin: https://www.princeton.edu/~hsshin/www/MacroprudentialMemo.pdf
- Acharya: http://www.worldbank.org/content/dam/Worldbank/document/Poverty%20documents/EMERGING_WB_CH02_57-90.pdf Pages 64 to 74
Week 5: Implementation in Europe: regulation, implementation & challenges
July 29nd, 2016
Aim: learn how Basel III was implemented in Europe and what are the challenges regulators faced in that implementation (namely, harmonization across national prudential authorities). Learn about EBA, ESRB and SSM.
Format: speaker + Q&A
Week 6: Implementation in the USA: regulation, implementation & challenges
August 5th, 2016
Aim: learn how Basel III was implemented in the USA.
Format: speaker + Q&A
References
- US implementation of a regulatory framework: https://www.fas.org/sgp/crs/misc/R42744.pdf
Week 7: Implementation in the USA vs. EU
August 12th, 2016
Aim: comparison between US and EU implementation
Format: discussion
References
- Where do we stand? 10th progress report on adoption of the Basel regulatory framework http://www.bis.org/bcbs/publ/d366.pdf
- Bruegel: the EU is the global laggard on Basel III: http://bruegel.org/2014/12/the-european-union-is-the-global-laggard-on-basel-iii/
- Economic Impacts and Policy Challenges in the United States, Japan, and the European Union: http://fsi.stanford.edu/publications/implementation_of_basel_iii_economic_impacts_and_policy_challenges_in_the_united_states_japan_and_the_european_union
- Comparison (Harvard paper): https://corpgov.law.harvard.edu/2013/09/27/basel-iii-framework-useu-comparison/
Week 8: Implementation in emerging markets and small open economies
August 19th, 2016
Aim: discuss how Basel III is implemented in EME countries and the challenges they face given underdeveloped financial markets
Format: discussion
References
- Challenges for EMEs and SOEs: http://www.bis.org/bcbs/publ/wp27.pdf
Week 9: Implementation in emerging markets and small open economies
August 26th, 2016
Aim: discuss how Basel III is implemented in those countries and what are the challenges they face given underdeveloped financial markets etc etc
Format: speaker + Q&A
References
- Challenges for EMEs and SOEs: http://www.bis.org/bcbs/publ/wp27.pdf
- Basel III for low-income economies: http://www.globaleconomicgovernance.org/research/flagship
Week 10: Financial and economic impact of Basel III
September 2nd, 2016
Aim: Discuss the impact of Basel III on banks, financial sector and the overall economy.
Format: speaker + Q&A
References
- How did banks respond to Basel III (empirical paper) : https://www.imf.org/external/pubs/ft/wp/2011/wp11119.pdf
- Macroeconomic impact of Basel III: 1) Overview of literature : http://www.dnb.nl/binaries/Working%20paper%20467_tcm46-319679.pdf, 2) OECD paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2650033; 3) long-term impact of Basel IIIhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1785522
Week 11: Open discussion on Basel III
September 9th 2016
Aim: Make a summary of what we learned, and perhaps make an overview of other on-going bank regulation such as bank separation and bail-in.
Format: discussion