Paradox of bank regulation (paradox = here

contrary to expectations or/and existing belief]): If strict capital regulations and supervisory instructions force banks to refrain from risky business, shadow banks will take over the financing in those fields. But if, in the course of this, these investors become indebted to the regulated banks, the risks will inevitably return to the banking system. This fact leads to the demand that large financial investors, pension funds, asset management companies, money market funds, opportunity funds, blind pools, conduits, hedge funds and similar entities in the shadow banking sector should also be subject to supervision. – See Same Business-Same Rule-Principle, Regulatory Arbitrage, Setback-.
Effect.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
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Zitieren

Merk, G. (Hrsg.): „Paradox of bank regulation (paradox = here“. In: Finanz- und Wirtschaftslexikon. https://www.gerhardmerk.de/paradox-of-bank-regulation-paradox-here/ (Stand: 25.07.2023).

Die von Universitätsprofessor Dr. Gerhard Merk begründete Sammlung wird seit Herbst 2014 von Professor Dr. Dr. h.c. Eckehard Krah redaktionell fortgeführt und um neue Begriffe ergänzt. Sollten Sie Fehler entdecken oder sonstige Hinweise haben, schreiben Sie an: info@ekrah.com

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