登入選單

返回Google圖書搜尋

Should Credit Default Swap Issuers Be Subject to Prudential Regulation?

Benjamin Saunders

出版	SSRN, 2015
URL	http://books.google.com.hk/books?id=aO4BzwEACAAJ&hl=&source=gbs_api

註釋

Credit default swaps (CDSs) contributed significantly to and exacerbated the recent global financial crisis. As a result of the major role that CDSs played, this paper argues that CDS issuers should be subject to prudential regulation, in order to improve systemic stability in the financial system. Three reasons are put forward for this proposition. First, CDSs are functionally equivalent to insurance and so should be regulated in a consistent manner. Secondly, CDSs perform the economic function of assuming credit risk, and so should be prudentially regulated in the same way as other financial institutions which assume credit risk. Finally, CDSs have the potential to contribute to systemic instability in the financial system, and prudential regulation would reduce this risk.