Some economics of banking reform

Working paper

Where do we stand, five years on from the start of the crisis, on progress towards banking reform? Major advances have been made, but a lot of unfinished business remains, notably on structural reform of banks. Following a stock-take of current reform initiatives, the paper reviews some economics of public policy towards banks, starting with the rationale for deposit guarantees and lender-of-last-resort support but concentrating on why governments feel compelled to provide solvency support in crisis. It then covers the economics of capital requirements

Authors: Vickers, J

• Publication status: Published
• Publisher: University of Oxford
• Series: Department of Economics Discussion Paper Series
• Publication date: 2012-11-30
• Paper number: 632
• Keywords: ring-fencing; deposit guarantees; bail-outs; structural reform; capital requirements; resolution; Glass-Steagall; banking; Volcker rule