Banking Regulation and Resolution of Banking Crises

Bank crises occur frequently in many countries and across many time periods. Many go beyond the distress of individual banks and have systemic effects, threatening the banking system as a whole. Since the nineteenth century governments and central banks have developed increasingly sophisticated methods to regulate banks in order to minimize the risk of bank distress and intervention tools to mitigate its effect. Since crises recur, as in the USA and United Kingdom in 2007, they motivate heightened discussion of the merits of regulation and intervention and their design. In this course you study technical aspects of bank regulation, supervision, and intervention to resolve crises. It relates the techniques to fundamental principles and to examples of countries’ experience.