tag:blogger.com,1999:blog-24338064.post6327629197078935465..comments2024-02-11T19:28:27.997+11:00Comments on Personal Reflections: Musings on the Cyprus bail-outJim Belshawhttp://www.blogger.com/profile/10075614280789984767noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-24338064.post-50807431069239457072013-03-28T06:02:47.931+11:002013-03-28T06:02:47.931+11:00Winton, that's certainly the approach that'...Winton, that's certainly the approach that's been taken to global regulatory reform since the GFC with the emphasis on capital requirements and stress testing. My initial thinking was a little different since it focused primarily on Cypriot responses.<br /><br />As I understand it, Cyprus chose to become or allow itself to become an international banking centre offering tax concessions to encourage funds. It did so because of the perceived economic benefits to the nation. Now, and thinking just of Cyprus, we arguably have a public policy rather than regulatory problem as such, the failure to focus on downsides. <br /><br /> Jim Belshawhttps://www.blogger.com/profile/10075614280789984767noreply@blogger.comtag:blogger.com,1999:blog-24338064.post-80022296629761919202013-03-27T23:38:35.313+11:002013-03-27T23:38:35.313+11:00Jim
I think the only sensible form of regulation t...Jim<br />I think the only sensible form of regulation that could have prevented the crisis would have been a more stringent equity capital requirement. Prior to the GFC, regulators would have had to have super-human foresight to see the risks involved in banks accepting deposits from Russians and using the funds to invest in Greek government bonds. <br />Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.com