In recent decades there has been significant deregulation in many industries. A sector that remains heavily regulated is banking. Why is this? In this article we argue that current banking regulation is the result of a sequence of reactions to historical events. Given that it is not designed to solve any particular problem, it is not clear that it is very effective. In what follows, we identify...

This work analyses problems in the legal framework of Open Banking enabled by Payment Services Directive 2 (PSD2). It goes through role EU law regulation payment services up to their transition towards digitalization and fintech, show scale changes brought PSD2 a territory unfamiliar traditional banking. The resulting conflation between banking data economy reveal brand-new market. normative in...

Blockchain technology is a core, underlying technology with promising application prospects in the banking industry. On one hand, the banking industry in China is facing the impact of interest rate liberalization and profit decline caused by the narrowing interest-rate spread. On the other hand, it is also affected by economic transformation, Internet development, and financial innovations. Hen...

Using data for 1238 banks located in 94 developing and emerging countries, we explore whether the impact of bank regulation and supervision on banking risk (measured by the banks’ Z-scores) depends on bank structure. Our findings suggest that stricter regulation and supervision increases the banks’ Z-scores. Notably capital requirements and supervisory control diminish banking risk. However, th...

In this paper Basel regulation is modeled in Dynamic Stochastic General Equilibrium (DSGE) framework. For this purpose, using data from 1981-2017 for Iran, capital adequacy as an importance regulation is modeled. Results show Basel regulation has procyclical effect. According to the results of the model and according to the realities of economy and banking system of Iran, in recession, lending ...