OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
Hide / Show Abstract
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Prudential Regulation and Competition in Financial Markets You or your institution have access to this content

Click to Access: 
    http://oecd.metastore.ingenta.com/content/5ks5q6ml96ls.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/prudential-regulation-and-competition-in-financial-markets_220117664431
  • READ
Author(s):
Rudiger Ahrend1, Jens Arnold1, Fabrice Murtin1
Author Affiliations
  • 1: OECD, France

Publication Date
01 Dec 2009
Bibliographic information
No.:
735
Pages
64
DOI
10.1787/220117664431

Hide / Show Abstract

This paper examines how a range of stability-oriented regulatory policies for banking and insurance are related to selected stability and competition outcomes in these sectors. Based on survey information on financial market regulation, policy indicators for eight areas of prudential banking regulation are constructed, in addition to indicators for the insurance sector. Despite incomplete information on some areas that turned out to be important in the context of the recent financial crisis, the indicators correlate well with different measures of financial stability, both during the recent crisis and beyond. Furthermore, the results do not support the view that there is a general trade-off between stability-oriented regulatory policies and competition in banking and insurance.
Keywords:
stability, insurance, banking, prudential regulation, competition
JEL Classification:
  • E44: Macroeconomics and Monetary Economics / Money and Interest Rates / Financial Markets and the Macroeconomy
  • G01: Financial Economics / General / Financial Crises
  • G14: Financial Economics / General Financial Markets / Information and Market Efficiency; Event Studies
  • G21: Financial Economics / Financial Institutions and Services / Banks; Depository Institutions; Micro Finance Institutions; Mortgages
  • G22: Financial Economics / Financial Institutions and Services / Insurance; Insurance Companies
  • G28: Financial Economics / Financial Institutions and Services / Government Policy and Regulation
  • L11: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Production, Pricing, and Market Structure; Size Distribution of Firms