Government and Policy Regulation – Monetary Policy after the Global Crisis https://monetarypolicy2018.weaconferences.net 19th February to 20th April, 2018 Mon, 09 Jun 2025 12:37:55 +0000 en-GB hourly 1 Banking regulation and post crisis approach to bankruptcies: An analysis through shadow banking, moral hazard and too big to fail https://monetarypolicy2018.weaconferences.net/papers/banking-regulation-and-post-crisis-approach-to-bankruptcies-an-analysis-through-shadow-banking-moral-hazard-and-too-big-to-fail/ Fri, 09 Feb 2018 16:36:22 +0000 http://monetarypolicy2018.weaconferences.net/?post_type=wea_paper&p=186 The work starts analyzing the pre and post 2007-2009 crisis banking regulation to later on deepen including mathematical finance and economic policy concepts and models into the application of the regulation among the US, Eurozone and Asia Pacific markets. The aim of the work is to analyze the application of the banking regulation in a bankruptcy or bailout scenario, through an empirical study of the authorities and consequently market agents. The model, based on the CAPM assumptions, is tested via the VaR implications and via the Black and Scholes application. The output of the analysis is to empirically demonstrate how the Moral Hazard concept and the speculative behaviours affect financial markets through the 2007-2009 crisis effects study, to then conclude with the inadequacy of the Too Big To Fail concept within the current financial system: if it is Too Big To Fail, then it is also Too Big To Exist.

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