Following the financial crisis of 2008, policymakers around the world have concentrated their efforts on designing a regulatory framework that increases the safety of individual institutions as well as the stability of the financial system as a whole. An important innovation has been the introduction of complex, model-based capital regulation. New research from Markus Behn, Rainer Haselmann, and Vikrant Vig examines how the introduction of model-based capital regulation affected the measurement and the overall level of banks’ credit risk.
- “The Limits of Model-Based Regulation,” by Markus Behn, Rainer Haselmann, and Vikrant Vig
Read more here:: Cato