Financial regulation and shadow banking

This two-day course by top finance professors of the University of Amsterdam covers the economic foundations for financial regulation and prudential policy, offering a guide on the evolving microprudential legislation and macroprudential policy targeting structural vulnerabilities associated with modern intermediation channels.

The course illustrates the insights underlying the novel approach by bank regulators and central banks since the financial crisis of 2007-2008. It covers the novel Basel III and FSB legislation on capital requirements and liquidity risk for banks and shadow banks. The philosophy of countercyclical policy based on explicit models of risk incentives resonates throughout the course.