Emerging Regulatory and Risk-management Frameworks in the Financial Industry

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The importance of proper regulation of all financial actors cannot be stressed enough in these times of crisis. After being accused of being too lax, financial regulatory agencies are now on the verge of imposing strict and maybe sometimes too restrictive policies. It is obvious that both the too liberal and the too conservative approach represent a risk for the global financial sector, and thereby, to the overall world economy. The team’s work will focus on identifying the right solutions for the right situations, by specifically focusing on the case of certain financial institutions and categories of financial actors.

The team has the following two main goals:

to offer an insight into the changes in the regulation of the banking system in response to the financial crisis, their motivation, reasons, rationale, appropriateness and potential effects on the banking industry

to investigate the changes of the lending and risk taking attitude, and the risk management practices of the banks in response to the financial crisis and the changing regulatory environment

More specifically, the following research questions will be investigated:

what are the challenges and changes in the banking regulation as a consequence of the current financial crisis

what indicator based analysis of the Hungarian banking system can be performed, with special regard to the changes in the levels of the indicators as a consequence of the crisis

how should the emerging systemic risk regulation be formed and shaped

Lead Researcher: Mérő, Katalin 

PhD, 2005, Budapest University of Technology and Economics

Selected recent publications:

Mérő, K- Erdős, M. (2010). Pénzügyi közvetítő intézmények, bankok és befektetési vállalkozások Akadémia Kiadó: Budapest

Mérő, K. (2008). Transformation of the Banking Model – The New Challenges for Banking Regulation Development and Finance. In: Handbook for Directors of Financial Institutions.

Mérő, K. (2008). A bankmodellek átalakulása – a bankszabályozás új kihívásai. Fejlesztés és Finanszírozás

Mérő, K. – Király, J. (2004). Basel Scepticism- From a Hungarian Perspective In: Gup, E. (ed.) The New Basel Capital Accord. Thomson/Texere, Mason