CEU Electronic Theses and Dissertations, 2014
| Author | Szabo, Samantha Ann |
|---|---|
| Title | Perpetuating Too Big To Fail: The Threat In Central Clearing |
| Summary | Central clearing is an effective means of mitigating dealer banks’ systemic risk, but does so by shifting credit risk from financial institutions onto clearinghouses. This introduces new too big to fail institutions in the financial markets by creating greater concentrations of risk, however, regulators are optimistic that central clearing parties will be more effective then dealer banks in managing risk and absorbing losses. The efficiency of this mechanism is contingent on clearinghouses themselves remaining solvent. Thus, there is an increasing need to review the governance laws and regulations applicable to clearinghouses to ensure sufficient capitalization, establish appropriate operating standards, and commit to ex-post policy resolutions in the case of failure. |
| Supervisor | Baniak, Andrzej and Tajti, Tibor |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2014/szabo_samantha.pdf |
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