Banks have been a ubiquitous feature of economic life since at least the 18th century. Yet the transformation that banks have undergone in the past thirty years has made the struggle of making them safe ever harder and more challenging. Arguably, the notion of market discipline aiding financial...

The generalised pumping of central bank liquidity to the western financial systems in the post-2008 period has generated serious debate and controversy. For instance, should the central bank offer liquidity assistance to solvent financial undertakings facing serious liquidity difficulties even...

Many of the world's developed economies have introduced, or are planning to introduce, bank bail-in regimes. Both the planned EU resolution regime and the European Stability Mechanism Treaty involve the participation of bank creditors in bearing the costs of bank recapitalization via the bail-in...

The chapter reconceptualizes financial innovation. In this context, it discusses the risks of financial innovation and contemporary regulatory reforms addressing those risks. It provides a critique of contemporary reforms. Finally, it stresses the need for a new framework to regulate financial...

Turbulence in foreign exchange markets and currency dumping/manipulation cultivate further mistrust in international economic relations. At the same time, both phenomena could potentially prove to be a cause of systemic risk. For example, foreign currency exposures were a key vulnerability...