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on Regulation |
| By: | Reza Siregar (Asian Development Bank Institute (ADBI)) |
| Abstract: | New lessons, challenges, and debates have emerged from the subprime crisis in the United States. While the macroeconomic orientation is not new and has always been among the classic toolkits of central banks for ensuring financial stability, the current explicit articulation and specification of such a tool as a global standard is new. The objective of this study is to review and analyze the steps taken by the central banks and monetary authorities of select Asian countries to strengthen their prudential regulations, mainly the macro-prudential component of such regulations. |
| Keywords: | Banking Regulation, Macro-prudential approache, prudential regulations, Financial Stability, central banks, Asia |
| JEL: | E52 E58 G28 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:23211&r=reg |
| By: | Bontemps, Christophe (GREMAQ,INRA); Nauges, Céline (LERNA-INRA); Réquillart, Vincent (TSE,GREMAQ,INRA,IDEI); Simioni, Michel (GREMAQ,INRA) |
| Abstract: | The purpose of this article is to assess whether food safety regulations imposed by the European Union in the 2000s may have induced a slow-down in the productivity of firms in the food processing sector. The impact of regulations on costs and productivity has seldom been studied. This article contributes to the literature by measuring productivity change using a panel of French food processing firms for the years 1996 to 2006. To do so, we develop an original iterative testing procedure based on the comparison of the distribution of efficiency scores of a set of firms. Our results confirm that productivity decreased in two major food processing sectors (poultry and cheese) at the time when safety regulation was reinforced. |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:25479&r=reg |
| By: | Luo Ping (Asian Development Bank Institute (ADBI)) |
| Abstract: | Reform of financial regulation is a priority on the international agenda. At the call of the Group of Twenty Finance Ministers and Central Bank Governors (G-20), a number of new international standards have been issued, most notably Basel III. As a member of the G-20, the Financial Stability Board (FSB), and the Basel Committee on Banking Supervision, the People’s Republic of China (PRC) is now on a faster track in adopting international standards. However, the key issue for the PRC—as well as many other emerging markets—is to how to keep focused on the domestic policy agenda while adopting the new global standards. Fortunately, the PRC’s financial system has proved resilient to the recent financial crisis. As a result, banks in the PRC find it quite easy to meet the new Basel III capital and liquidity standards. Basel III is only part of an effective regulatory framework. While phasing in Basel III, the PRC needs other prudential tools such as a new provision ratio, in addition to the provision coverage ratio. Activity restriction will be another effective tool with the potential to prevent banks from becoming too complicated for bankers to manage and for the regulator to supervise. As we work hard to improve the effectiveness of the regulatory system at both the global and national level, we should remind ourselves of the importance of keeping the balance between enhanced regulation and promoting financial innovation—without the pendulum swinging too far. |
| Keywords: | financial regulation, China, financial sector, banking supervision, regulatory framework |
| JEL: | E44 E52 E58 G18 G28 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23226&r=reg |
| By: | Quaas, Martin F.; Requate, Till |
| Abstract: | We present a model of a multi-species fishery and show that (i) consumer preferences for seafood diversity may trigger a sequential collapse of fish stocks under open-access fishery, (ii) the stronger the preferences are for diversity the higher is the need for coordinated multi-species regulation, (iii) second-best optimal management of only one (or a few) species is less strict than socially optimal management of the same species. Finally, (iv) myopic regulation of one species, ignoring spill-overs to other species, may cause depletion of other stocks that would not be depleted under open access. -- |
| Keywords: | marine biodiversity,fishery economics,product differentiation |
| JEL: | Q22 Q57 Q21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:201203&r=reg |
| By: | Federico Lupo Pasini (Asian Development Bank Institute (ADBI)) |
| Abstract: | Capital controls and exchange restrictions are used to restrict international capital flows during economic crises. This paper looks at the legal implications of these restrictions and explores the current international regulatory framework applicable to international capital movements and current payments. It shows how international capital flows suffer from the lack of a comprehensive and coherent regulatory framework that would harmonize the patchwork of multilateral, regional, and bilateral treaties that currently regulate this issue. These treaties include the Articles of Agreement of the International Monetary Fund (IMF Articles), the General Agreement on Trade in Services (GATS), free-trade agreements, the European Union treaty, bilateral investment treaties, and the Organization for Economic Co-operation and Development (OECD) Code of Liberalization of Capital Movements (OECD Code of Capital Movement). Each of these instruments regulate differently capital movements with little coordination with other areas of law. This situation sometimes leads to regulatory overlaps and conflict between different sources of law. Given the strong links between capital movements and trade in services, this paper pays particular attention to the rules of the GATS on capital flows and discusses the policy space available in the GATS for restricting capital flows in times of crisis. |
| Keywords: | international capital flows, capital controls, exchange restrictions, regulatory framework, international capital movement |
| JEL: | F13 F31 F32 F53 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:23198&r=reg |
| By: | Venkatachalam Anbumozhi (Asian Development Bank Institute (ADBI)); Mari Kimura; Kumiko Isono |
| Abstract: | As an integral part of sustainable development, the impacts from climate change, including increasing water stress, more extreme weather events, the potential for high levels of migration and the disruption of international markets are critical challenges for all Asian countries. With rapid economic growth and modernization, the countries in the region are increasing production and consumption, calling for critical adaption measures. With the Asian countries and the energy sector exceedingly accounting for a large share of CO2 and GHG emissions, businesses in Asia need to increase efficiency in energy use, offset emissions, and use more low carbon or renewable energy resources. Businesses are no longer considered part of the environmental problem as they are progressively becoming part of the solutions, and if furthered by an ideal regulatory disposition this would encourage corporations to strive for zero emissions. To address these issues, this paper reviews selected initiatives taken by Asian countries to comply with emerging global sustainability standards, reporting, and management systems, and tracks the response of Asian businesses to global environmental concerns, examines market based innovations including new regulations that augmented corporate excellence, and identifies future directions for business that lead low carbon society. It recommends governments and business to join forces in supporting low carbon initiatives, drawing upon market mechanisms through reconfiguring national environmental policies and strategies. |
| Keywords: | sustainable development, Climate change, Asian countries, environmental policies, environmental strategies |
| JEL: | M19 Q3 Q48 Q56 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23201&r=reg |
| By: | Reinhilde Veugelers |
| Abstract: | European Union policymakers have in principle put innovation at the heart of competitiveness, in particular in the Europe 2020 strategy. But in merger control, assessments of the innovation effects of mergers are inadequate, even though mergers and acquisitions can have a significant impact on the development of the structure of an industry, and on its capability to innovate. EU merger control rules include scope for assessing the innovation effects of mergers, but in practice, the European Commission's directorate-general for competition (DG COMP) is not â??walking the talkâ??. Innovation effects are only assessed when claimed by parties to a merger, and this happens rarely. Where innovation effects have been claimed, they have not been decisive in any case, meaning DG COMP has not considered them important enough to influence its decision. A framework should be put in place that makes the reporting of efficiency-related information by the merging parties mandatory, so that innovation effects can be properly assessed for all mergers. In addition, models can be used to make an assessment of the longer-term innovation effects of a merger, and to help inform decision-making. The author acknowledges the excellent research assistance of Joan de Solà -Morales and Hendrik Meder, and would like to thank Lars-Hendrik Röller for discussing and commenting on earlier versions of the paper. |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:708&r=reg |