The Evolution of Banking Regulation in the European Union: An Economic Approach puts the analysis of banking regulation back where it belongs—within the study of the monetary system. Drawing on the theories of Walter Bagehot, this book offers a coherent and analytical framework for an integrated economic approach to a variety of banking regulations. Foregrounding the economics of money and the analysis of monetary institutions in the rationale for banking regulation, this book contributes to the discussion on the nature and efficiency of banking regulation and on its broader consequences for the economy, with a focus on the European Union.
Nikolay Gertchev is adjunct professor of financial economics at the University of Angers.
Chapter 1 Monetary Regimes and the Liquidity-based Regulation of Banks
Chapter 2 Micro-Prudential Regulation and Supervision
Chapter 3 Macro-Prudential Regulation and Financial Stability
Chapter 4 The Too-Big-to-Fail Issue and Its Regulatory Solutions
After the collapse of SVB and Credit Suisse, Nikolay Gertchev's book is more relevant and important than ever. Lombard Street for the 21st century. The work is mandatory reading for all students of modern money and banking.
What role do banks serve in the modern financial system? This essential book guides the reader through a logical approach to both micro- and macro-prudential regulations, arguing that market discipline and a return to clearly defined property rights in money allow for a stronger foundation for banks, promoting healthier and more robust economies. This analysis is essential reading for any and all interested in the future of banking.
At least since the 1930s, economists have shied away from providing a systematic explanation of the causes, consequences, and evolution of banking regulation, abandoning the field to the untutored efforts of lawyers and practitioners. Not so the author of this book, Nikolay Gertchev, who considers it the professional responsibility—nay, the 'moral duty'—of economists to analyze banking regulation through the unclouded lens of economic theory. In accepting this duty, Gertchev has written a book that is a worthy successor to the last great work on banking regulation, the nineteenth-century classic Lombard Street by Walter Bagehot.
Though it is always good to listen to what Gertchev has to say on monetary issues, The Evolution of Banking Regulation in the European Union deserves special attention as an attempt to tackle regulatory aspects of banking in the European Union from an Austrian perspective. A fine resource for those interested in the pressing issue of European financial architecture.
To understand banking regulation issues and possible ways out, there is no better source than this brilliantly written monograph. Dr. Nikolay Gertchev is a veteran practitioner of financial regulation and one of the finest economic thinkers today. His book is essential reading for politicians, financial regulators, and all students of present-day money and banking.