Banking Regulation in Times of Crisis: An Economic Analysis from Turkey and Russia Akun Ergun Deniz
During and after the 2007-2009 global financial crisis, emerging market economies displayed remarkable resilience and maintained robust rates of economic growth. Learning from the lessons of the…
Specifikacia Banking Regulation in Times of Crisis: An Economic Analysis from Turkey and Russia Akun Ergun Deniz
During and after the 2007-2009 global financial crisis, emerging market economies displayed remarkable resilience and maintained robust rates of economic growth. Learning from the lessons of the crises of the past 15 years, developing countries have adopted measures to become less vulnerable to the external shocks that are likely to emerge from more developed countries. Academics and policymakers have focused on the construction of an appropriate regulatory and supervisory framework for the banking sector. Banks were engaging in excessive risk taking during the global crisis. Prudential banking regulation and supervision have been designed with the aim of curbing excessive risk taking by banks, because engaging in excessive risky transactions is the ultimate source of instability. Hence, banking regulation is needed to deal with the failure of markets to police banks' risky behaviors.