Regulatory Boundaries for the Banking System
Darrell Duffie , Stanford University , United States
Date:
04 Jul 2013
Time:
4.00pm – 5.30pm
Venue:
Lecture Theatre 12
(This seminar is organized jointly with Institute for Mathematical Sciences, Department of Economics, and Monetary Authority of Singapore)
About the Speaker
Darrell Duffie is the Dean Witter Distinguished Professor of Finance at the Stanford Graduate School of Business, a Fellow of the American Academy of Arts and Sciences, and an Independent Director of Moody’s Corporation. He is considered by many to be one of the most influential financial economists of his era. He has developed the modern toolkit of term structure and credit modeling, which stands out for its immense practicality. He was President of the American Finance Association in 2009.
Abstract
I reconsider the debate over the appropriate regulatory boundaries of the banking system in the light of the financial crisis of 2007-2009, recently enacted laws, and proposed new regulations. The central issues are the range of financial services to which regulated banks should be restricted and the extent to which “shadow banks” offering these services should be subject to corresponding regulation. A closely related issue is access to emergency lending of last resort from central banks by financial institutions that are outside of the regulated banking system.
