Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Western Hemisphere Department, issuing body.
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| ISBN: | 1282845888
9781282845886
9781452768205
145276820X
1451982844
9781451982848
1462349692
9781462349692
9786612845888
6612845880
1451982755
9781451982756
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| Notes: | Includes bibliographical references (pages 23-25).
English.
Print version record.
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| Summary: | The recent financial crisis has highlighted once more that interconnectedness in the financial system is a major source of systemic risk. I suggest a practical way to levy regulatory capital charges based on the degree of interconnectedness among financial institutions. Namely, the charges are based on the institution's incremental contribution to systemic risk. The imposition of such capital charges could go a long way towards internalizing the negative externalities associated with too-connected-to-fail institutions and providing managerial incentives to strengthen an institution's solvency position, and avoid too much homogeneity and excessive reliance on the same counterparties in the financial industry.
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| Other form: | Print version: Chan-Lau, Jorge A. Regulatory capital charges for too-connected-to-fail institutions. [Washington, D.C.] : International Monetary Fund, [2010], ©2009
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