On banking and intermediation

Jean Tirole*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    10 Scopus citations

    Abstract

    The purpose of this lecture is to develop a framework for the study of prudential regulation and to derive policy implications. Following a discussion of the practice of banking supervision and of the raison d'être of regulation, the paper emphasizes the importance of capital adequacy and balance sheet adjustments to shocks affecting either individual banks or the banking sector as a whole. The ideas are then applied to the policy debates on market value accounting and on the indexation of the capital requirements to the business cycle. The paper concludes with political economy questions and with a discussion of the 'too-big-to-fail' problem.

    Original languageEnglish (US)
    Pages (from-to)469-487
    Number of pages19
    JournalEuropean Economic Review
    Volume38
    Issue number3-4
    DOIs
    StatePublished - Apr 1994

    Keywords

    • Bank failures
    • Banking regulation
    • Capital requirements
    • Governance
    • Market value accounting

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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