Description

In today's financial system, complex financial institutions are connected through an opaque network of financial exposures. These connections contribute to financial deepening and greater savings allocation efficiency, but are also unstable channels of contagion. Basel III and Solvency II should improve the stability of these connections, but could have unintended consequences for cost of capital, funding patterns, interconnectedness, and risk migration.

Taxonomy

Financial institutions and markets , IMF governance and operations , Insurance , Operations , Standards and Codes

More publications in this series: Working Papers

More publications by: Ahmed I Al-Darwish ; Michael Hafeman ; Malcolm Kemp ; Padraic O'Malley ; Gregorio Impavido