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Natural Monopoly Regulation Principles' Application to Reduce Systemic Risk in Banking

Финансы и бизнес. 2021. Vol. 17. No. 3. P. 50–61.
Penikas H. I.

The objective of the current paper is to justify how the natural monopoly regulation principles are worth applying in banking. Tirole required that the natural monopolies gradually reduce their tariffs throughout the years. In relationship tobanking his principle means that the systemically important banks should be required to gradually reduce the risk taken, i.e., to decrease the risk-weights used for the capital adequacy ratio. Such a regulation delivers reductions in banking systemic risk. As the risk-weights are model-derived, they are as unobservable as the systemic risk itself is.

Research target: Economics and Management
Language: English
Full text
Keywords: natural monopolyестественная монополиясистемный рискПВРIRB systemic risk
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