Regulatory responses to banking crisis: Lessons from Japan

摘要

Documenting how governments around the world have responded to banking crises and how their regulatory responses affected the performance of banking systems and the speed of economic recovery is of interest to academics and policy-makers alike. Studying the history of past banking crises can shine light on a number of critical questions. Do politicians and regulators have incentives to unleash market discipline and allow it to play an important role in safeguarding seemingly fragile banking systems? If market discipline fails, do they have the ability and willingness to apply stringent, rule-based, regulatory discipline on problem banks? What are the economic consequences of regulatory forbearance?