Hyun Song Shin, Hughes-Rogers Professor of Economics at Princeton University will present his winning paper entitled “Macroprudential Policies Beyond Basel III”.
‘The centerpiece of the new capital and liquidity framework for banks known as Basel III is a strengthened common equity buffer of 7% together with newly introduced liquidity requirements and a leverage cap, to be phased in over an extended timetable running to 2019.
The elements that were most promising in living up to the macroprudential aims of regulatory reform – the countercyclical capital buffer and the capital surcharge for the systemically important financial institutions (SIFIs) – proved most controversial and have yet to be finalized.
Under its current agreed form, Basel III is almost exclusively micro-prudential in its focus, concerned with the solvency of individual banks, rather than being macro-prudential, concerned with the resilience of the financial system as a whole.’
