Cooperative Compliance or Compliant Cooperation? How cooperative approaches to tax auditing are related to firms’ tax risk management, tax risk, and compliance costs

Cooperative compliance (CC) programs are tax audit regimes that replace conventional, ex-post tax audits, with real-time cooperation between firms and tax authorities. According to the OECD, CC is based on mutual trust, transparency, and cooperation and should provide benefits for both sides. First, tax authorities benefit from increased compliance. Because CC-firms are at low risk […]

SMEs in India: Data Privacy and Security and Learnings from the World

Most countries give special treatment to small and medium scale enterprises (“SMEs”) for regulatory compliance given their special needs and limited resources. Countries also grant special treatment and exemptions for data protection compliance, as it is difficult for SMEs to invest large sums into the technological peripherals required to comply with stringent data protection regulations. […]

How should banking supervisors handle COVID-19 crisis?

Supervisory authorities have generally reacted swiftly to the COVID-19 pandemic, deploying support measures such as debt repayment postponement, stimulus packages, and credit guarantees. In some jurisdictions, supervisory authorities also provided capital, liquidity and operational relief to banks. So far, these measures have helped mitigate some of the short-term financial stability risks. However, in many countries, […]

Model Secrecy and Stress Tests

Following the 2008 financial crisis and the Dodd-Frank Act, bank stress tests have become a cornerstone of bank regulation. An important but unexplored issue is the optimal level of transparency of the supervisory stress tests models that are used to project bank capital when conducing the tests.[1] Until 2018, the Federal Reserve provided only a […]

How Important Is Moral Hazard For Distressed Banks?

The bank safety net inherently introduces moral hazard. For example, deposit insurance effectively serves as a put option whose value increases as risk-taking increases, potentially encouraging a bank to increase its value by taking on more risk. Also, due to banks’ systemic importance, they typically receive state support during periods of crisis and even outside […]

ERISA and ESG Investing

The Department of Labor (“DOL”), through its administration of the Employee Retirement Income Security Act of 1974 (ERISA), has a critical role to play in the regulation of employee pension benefit plans. Most importantly, the DOL is tasked with enforcing the fiduciary duties of ERISA plan managers (trustees who retain investment and voting authority or […]

Never Two Without Three: Will the World Listen After the Global Financial Crisis, COP21 and the Pandemic?

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

Financing in the Time of a Climate Emergency in the Philippines

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

Ecological Finance Theory: An Answer to the Climate Crisis

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

Preventing Climate Tragedy and Preserving Financial Stability: European Perspectives

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]