Journal title ECONOMIA E DIRITTO DEL TERZIARIO
Author/s Giovanni Ferri
Publishing Year 2017 Issue 2016/3
Language Italian Pages 26 P. 383-408 File size 492 KB
DOI 10.3280/ED2016-003003
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The global financial crisis and the European sovereign debt one have led to new rules for risk-taking by banks. Basel 3 has raised bank capitalization and introduced other rules. We argue that, especially in the European approach one-size-fits-all, the new rules have negative impacts on traditional banks, especially cooperatives and savings banks. First, typically relying more on Internal Rating Based (IRB) models than traditional banks, banks more oriented to finance have more flexibility in determining their capital requirements, sometimes raising suspicions of regulatory arbitrage. In addition, traditional banks, particularly the smaller ones, are aggravated by increasing compliance costs to rules which do not take proportionality into account. We conclude that regulation is helping to erode the bank diversity in Europe, with potential adverse repercussions on financial stability.
Keywords: Basel III, banking regulation, traditional banks and banks oriented to finance
Jel codes: D53, G21, G28
Giovanni Ferri, Regolamentazione bancaria: serve un cambio di approccio in "ECONOMIA E DIRITTO DEL TERZIARIO " 3/2016, pp 383-408, DOI: 10.3280/ED2016-003003