Structured finance influence on financial market stability: Evaluation of current regulatory developments

Arbeitspapier

In 2007 the world faced one of the biggest financial crises ever. It was the third important financial crisis in the last 12 years. Spillovers to the real economy and moral hazard behaviour of carpetbaggers resulted in enormous pressure on worldwide political institutions to approve a more rigorous regulation on financial institutions and predict financial crises via early warning systems. We analyzed the performance of structured finance ratings and structured finance issuance/outstanding to detect the main shortcomings of the subprime crisis. Afterwards we explain the behaviour of market participants with theoretical models and a survey of institutions involved in securitization. With the conclusions of this analysis we evaluate the EU regulation on credit rating agencies and current Basel II enhancements. Finally we can determine that most regulatory enhancements are in accordance with our analyzed shortcomings. Some approaches like the introduction of a leverage ratio are counterproductive and a danger for worldwide economic growth.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper Series in Economics ; No. 178

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Financial Institutions and Services: Government Policy and Regulation
• Thema: structured finance ; ratings ; regulation ; subprime crisis ; Basel II ; leverage ratio ; Hybrides Finanzprodukt ; Securitization ; Subprime-Hypothek ; Finanzmarktkrise ; Kreditwürdigkeit ; Regulierung ; Bankenpolitik ; Basel II ; EU-Staaten ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schütz, Sebastian A.
• Ereignis: Veröffentlichung
• (wer): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (wo): Lüneburg
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/57102
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ