ABSTRACT

This book is a review on the economic theories of systemic risks in the financial market and the topics in constructing the macroprudential framework for banking regulation in the future. It explains the reasons why the traditional microprudential regulatory framework missed its target in stabilizing the market and preventing the crisis, and discusses the principles and instruments for designing macroprudential rules.

chapter |8 pages

Introduction

part I|140 pages

Externalities, network effects, and systemic risks

chapter 1|22 pages

Unstable banking

chapter 4|26 pages

Financial complexity and systemic risk

chapter 5|20 pages

Leverage and leverage cycle

chapter 6|25 pages

Micro fragility and macro stability

part II|61 pages

Topics in macroprudential regulation