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Regulating securitisation : the housing price bubble, financial stability, and Basel III

Bibliographic Details
Title: Regulating securitisation : the housing price bubble, financial stability, and Basel III
Authors: Dyck, Maximilian
Contributors: Bavoso, Vincenzo, Galanis, Michael
Publisher Information: University of Manchester, 2019.
Publication Year: 2019
Subject Terms: 332.63, Friedrich Hayek, Free market economics, Financial markets, Capital markets, Efficient markets hypothesis, Financial instability hypothesis, The market, Hyman Minsky, Milton Friedman, Austrian school of economics, Speculation, Mont Pelerin Society, Margaret Thatcher, Ronald Reagan, Karl Polanyi, The neoclassical market, Housing price bubble, Asset bubbles, Neoliberalism, Leverage, Chicago school, Neoclassical Economics, Global financial crisis, True sale, Asset securitisation, Basel III, Basel I, Basel II, Basel Committee on Banking Supervision, Bankruptcy remoteness, Capital requirements, Liquidity coverage ratio, Net stable funding ratio, Financial innovation, Capital conservation buffer, Leverage ratio, Financial regulation, Freddie Mac, Fannie Mae, Ginnie Mae, Synthetic CDO, Collateralised debt obligations, Countercyclical buffer, Government sponsored entities
Description: The severity of the consequences of financial instability calls for studies of financial markets from many different angles to develop a comprehensive picture of possible causes. These causes were, as will be argued in this thesis, of little concern to pre-crisis financial regulation. Instead, regulation focussed on the market process as a regulatory mechanism, a stance commonly adopted under the ideology of neoliberalism that permeated political discourse from the late 1970s. Neoliberalism derived its faith in the market process from the neoclassical conception of the market. Neoclassicists believed that the market did not need a regulatory framework to efficiently allocate resources to the benefit of society. Their belief was so strong that they ignored concerns over financial instability with dire consequences that materialised during the global financial crisis. This thesis will employ the Financial Instability Hypothesis (FIH) to discuss the inherent instabilities of financial systems that are in large part attributable to financial innovation. Policymakers used financial innovation and, particularly, securitisation in the Basel Accords on capital requirements to give capital markets the power to allocate capital to the benefit of society. The FIH will reveal that securitisation contributed to driving increases in leverage and housing prices in pre-crisis years to a point where the financial system collapsed. The issues to be discussed should feature in post-crisis regulatory developments. To determine the extent to which this is the case, this thesis will discuss Basel III in light of the discussion of the FIH and securitisation. It will become apparent that Basel III introduces many important reforms, especially in the context of liquidity and leverage requirements. Since the Basel Accords used securitisation as a tool in pre-crisis years, this thesis will discuss whether Basel III continues to be informed by the neoclassical conception of the market in its market discipline mechanism. It will ultimately conclude that Basel III does not address the regulatory failures that allowed securitisation to drive the housing price bubble. It continues to believe in the efficiency of the market process.
Document Type: Thesis Or Dissertation
Language: English
Access URL: https://ethos.blethoshyku.com/concern/thesis_or_dissertations/809304
Accession Number: edsble.809304
Database: British Library EThOS
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  Label: Title
  Group: Ti
  Data: Regulating securitisation : the housing price bubble, financial stability, and Basel III
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  Label: Authors
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  Data: Bavoso, Vincenzo<br />Galanis, Michael
– Name: Publisher
  Label: Publisher Information
  Group: PubInfo
  Data: University of Manchester, 2019.
– Name: DatePubCY
  Label: Publication Year
  Group: Date
  Data: 2019
– Name: Subject
  Label: Subject Terms
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– Name: Abstract
  Label: Description
  Group: Ab
  Data: The severity of the consequences of financial instability calls for studies of financial markets from many different angles to develop a comprehensive picture of possible causes. These causes were, as will be argued in this thesis, of little concern to pre-crisis financial regulation. Instead, regulation focussed on the market process as a regulatory mechanism, a stance commonly adopted under the ideology of neoliberalism that permeated political discourse from the late 1970s. Neoliberalism derived its faith in the market process from the neoclassical conception of the market. Neoclassicists believed that the market did not need a regulatory framework to efficiently allocate resources to the benefit of society. Their belief was so strong that they ignored concerns over financial instability with dire consequences that materialised during the global financial crisis. This thesis will employ the Financial Instability Hypothesis (FIH) to discuss the inherent instabilities of financial systems that are in large part attributable to financial innovation. Policymakers used financial innovation and, particularly, securitisation in the Basel Accords on capital requirements to give capital markets the power to allocate capital to the benefit of society. The FIH will reveal that securitisation contributed to driving increases in leverage and housing prices in pre-crisis years to a point where the financial system collapsed. The issues to be discussed should feature in post-crisis regulatory developments. To determine the extent to which this is the case, this thesis will discuss Basel III in light of the discussion of the FIH and securitisation. It will become apparent that Basel III introduces many important reforms, especially in the context of liquidity and leverage requirements. Since the Basel Accords used securitisation as a tool in pre-crisis years, this thesis will discuss whether Basel III continues to be informed by the neoclassical conception of the market in its market discipline mechanism. It will ultimately conclude that Basel III does not address the regulatory failures that allowed securitisation to drive the housing price bubble. It continues to believe in the efficiency of the market process.
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  Data: Thesis Or Dissertation
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  Data: English
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  Data: <link linkTarget="URL" linkTerm="https://ethos.blethoshyku.com/concern/thesis_or_dissertations/809304" linkWindow="_blank">https://ethos.blethoshyku.com/concern/thesis_or_dissertations/809304</link>
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  Label: Accession Number
  Group: ID
  Data: edsble.809304
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsble&AN=edsble.809304
RecordInfo BibRecord:
  BibEntity:
    Languages:
      – Text: English
    Subjects:
      – SubjectFull: 332.63
        Type: general
      – SubjectFull: Friedrich Hayek
        Type: general
      – SubjectFull: Free market economics
        Type: general
      – SubjectFull: Financial markets
        Type: general
      – SubjectFull: Capital markets
        Type: general
      – SubjectFull: Efficient markets hypothesis
        Type: general
      – SubjectFull: Financial instability hypothesis
        Type: general
      – SubjectFull: The market
        Type: general
      – SubjectFull: Hyman Minsky
        Type: general
      – SubjectFull: Milton Friedman
        Type: general
      – SubjectFull: Austrian school of economics
        Type: general
      – SubjectFull: Speculation
        Type: general
      – SubjectFull: Mont Pelerin Society
        Type: general
      – SubjectFull: Margaret Thatcher
        Type: general
      – SubjectFull: Ronald Reagan
        Type: general
      – SubjectFull: Karl Polanyi
        Type: general
      – SubjectFull: The neoclassical market
        Type: general
      – SubjectFull: Housing price bubble
        Type: general
      – SubjectFull: Asset bubbles
        Type: general
      – SubjectFull: Neoliberalism
        Type: general
      – SubjectFull: Leverage
        Type: general
      – SubjectFull: Chicago school
        Type: general
      – SubjectFull: Neoclassical Economics
        Type: general
      – SubjectFull: Global financial crisis
        Type: general
      – SubjectFull: True sale
        Type: general
      – SubjectFull: Asset securitisation
        Type: general
      – SubjectFull: Basel III
        Type: general
      – SubjectFull: Basel I
        Type: general
      – SubjectFull: Basel II
        Type: general
      – SubjectFull: Basel Committee on Banking Supervision
        Type: general
      – SubjectFull: Bankruptcy remoteness
        Type: general
      – SubjectFull: Capital requirements
        Type: general
      – SubjectFull: Liquidity coverage ratio
        Type: general
      – SubjectFull: Net stable funding ratio
        Type: general
      – SubjectFull: Financial innovation
        Type: general
      – SubjectFull: Capital conservation buffer
        Type: general
      – SubjectFull: Leverage ratio
        Type: general
      – SubjectFull: Financial regulation
        Type: general
      – SubjectFull: Freddie Mac
        Type: general
      – SubjectFull: Fannie Mae
        Type: general
      – SubjectFull: Ginnie Mae
        Type: general
      – SubjectFull: Synthetic CDO
        Type: general
      – SubjectFull: Collateralised debt obligations
        Type: general
      – SubjectFull: Countercyclical buffer
        Type: general
      – SubjectFull: Government sponsored entities
        Type: general
    Titles:
      – TitleFull: Regulating securitisation : the housing price bubble, financial stability, and Basel III
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: Dyck, Maximilian
      – PersonEntity:
          Name:
            NameFull: Bavoso, Vincenzo
      – PersonEntity:
          Name:
            NameFull: Galanis, Michael
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 01
              M: 01
              Type: published
              Y: 2019
          Identifiers:
            – Type: issn-locals
              Value: edsble
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