Fragmenting Markets: Post-Crisis Bank Regulations and Financial Market Liquidity

by Darrell Duffie

Post-crisis capital regulations and new failure-resolution rules increased the funding costs that are borne by bank shareholders, and thus the cost to buy-side firms for access to space on the balance sheets of large banks. A policy implication is the encouragement of market infrastructure and trading methods that reduce the amount of space on bank balance sheets that is needed to conduct a given amount of trade.

Using models and evidence,...

• Format: Hardcover
• Language: English
• ISBN: 3110673029
• ISBN13: 9783110673029
• Release Date: November 2022
• Publisher: de Gruyter
• Length: 94 Pages
• Weight: 0.79 lbs.
• Dimensions: 0.3" x 6.7" x 9.6"