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       Posted on February 22nd, 2012

Strategic Review of Innovation in the Payments System: Summary of Consultation

The Reserve Bank began formal consultation for the Strategic Review of Innovation in late June 2011 with the publication of two documents – Strategic Review of Innovation in the Payments System: Issues for Consultation (the consultation paper) and Strategic Review of Innovation in the Payments System: Results of the Reserve Bank of Australia’s [...]


       Posted on February 8th, 2012

Financial Innovation and Consumer Protection: An overview of the objectives and work of the EBA’s Standing Committee on Financial Innovation (SCFI) in 2011-2012

The EBA has published an overview of the objectives and work of the EBA’s Standing Committee on Financial Innovation (SCFI) in 2011-2012 in the area of consumer protection and financial innovation.

The regulation establishing the European Banking Authority (EBA) requires the establishment of a Committee on Financial Innovation (article 9). The main [...]


       Posted on February 5th, 2012

Model Insurer 2012: Case Studies of Effective Technology Use in Insurance

Twenty-three Model Insurer Components are described in this sixth annual edition, and Celent’s Model Insurer of the Year is named.

In this new report, “Celent Model Insurer 2012: Case Studies of Effective Technology Use in Insurance”, Celent recognizes 23 insurance technology initiatives as “Model Insurer Components.” The report also names Nationwide Insurance [...]


       Posted on January 4th, 2012

Prudent Banks and Creative Mimics: Can We Tell the Difference?

The recent financial crisis has forced a rethink of banking regulation and supervision and the role of financial innovation. This paper develops a model where prudent banks may signal their type through high capital ratios. Capital regulation may ensure separation in equilibrium, but deposit insurance will tend to increase the level of capital [...]


       Posted on November 23rd, 2011

Welfare effects of financial innovation

Financial innovation can unlock economic value but, if banks are to reap the benefits, they need robust defenses against risk. Over the past two decades, bank profits have been underpinned by high leverage, creating vulnerabilities. The role of prudential regulation is to ensure that banks are well equipped to deal with risk, thereby [...]


14 pages