Regulatory Supervision - Publications - Faculty & Research

Research Summary

Understanding Regulatory Relationships: Application to the US Banking Industry

This project explores the dynamics of supervisory relationships in the banking industry. In a working paper with Stan Veuger, use geographic proximity of examiners' field office to identify the benefits of close supervision for small banking institutions.... View Details

2011
Other Unpublished Work

The Performance Effects of Regulatory Oversight

This paper explores the heterogeneity in firm performance that can arise from exogenously varying levels of oversight in regulated industries. We use data on the performance of U.S. commercial banks to show that banks located physically closer to their supervisors'... View Details

Keywords: Performance; Corporate Governance

Citation

2020
Working Paper

Internal Models, Make Believe Prices, and Bond Market Cornering

By: Ishita Sen and Varun Sharma

Exploiting position-level heterogeneity in regulatory incentives to misreport and novel data on regulators, we document that U.S. life insurers inflate the values of corporate bonds using internal models. We estimate an additional $9-$18 billion decline in regulatory... View Details

Keywords: Life Insurers; Capital Regulation; Internal Models; Corporate Bonds; Regulatory Supervision; Concentrated Ownership; Bonds; Capital; Governing Rules, Regulations, and Reforms; Insurance; Investment Portfolio

Citation

SSRN

15 Aug 2007
Op-Ed

3 Steps to Reduce Financial System Risk

Regulatory authorities face 2 challenges that need to be addressed forcefully if they are to contain a new source of systemic risk in international finance. First, the increasing migration of complex market activities to supervisory... View Details

Keywords: by Mohamed El-Erian; Financial Services; Banking

22 Jun 2009
Research & Ideas

“Too Big To Fail”: Reining In Large Financial Firms

biggest financial institutions sounds familiar, you're right. [Editor's note: On June 16, 2009, the Obama administration released a five-point proposal for overhauling the U.S. system of financial regulation; the first item is "Promote Robust View Details

Keywords: by Roger Thompson; Banking; Financial Services

09 Sep 2008
First Look

First Look: September 9, 2008

agencies. While negative ratings may "shame" firms that are performing poorly, the threat of regulatory action and the presence of "low hanging fruit" are important drivers of how firms respond to information-based... View Details

Keywords: Sean Silverthorne

14 Mar 2023
In Practice

What Does the Failure of Silicon Valley Bank Say About the State of Finance?

single day, leaving the bank with a $1 billion negative balance, according to a regulatory filing by the company. While financial regulators have announced that the US will guarantee all deposits at SVB, its collapse has spooked customers... View Details

Keywords: by Dina Gerdeman; Financial Services; Banking

21 Jul 2010
Research & Ideas

HBS Faculty Debate Financial Reform Legislation

legislation deserves to be recognized as a large and impressive accomplishment nonetheless. The most important part of the statute, Title I, authorizes regulators to tighten regulatory standards for the largest and most systemically... View Details

Keywords: by Staff

12 Jul 2020
Research & Ideas

Solving COVID'S Mental Health Crisis

at-home services or take-home medications under the close supervision of a treatment professional. Many are taking advantage of the easing of telehealth restrictions to expand access and deliver services more efficiently. Still, many... View Details

Keywords: by Howard Stevenson and Shirley Spence; Health

11 Sep 2007
First Look

First Look: September 11, 2007

commonality in the bioprocessing aspects of both approaches, the regulatory approvals, product development paths, and market-access timelines were dramatically different--almost diametrically opposed. Analyzes Biocon's strategic... View Details

Keywords: Martha Lagace

19 Jan 2022
In Practice

7 Trends to Watch in 2022

As 2022 gets underway we asked our faculty to highlight some trends worth watching in the coming year. Ariel Stern: A new future for digital health care While 2020 and 2021 were years of rapid innovation and deployment of new health care technologies and delivery... View Details

Keywords: by HBS News

02 Oct 2018
First Look

New Research and Ideas, October 2, 2018

Innovation ranks fifth, after more conventional concerns such as attracting and retaining top talent and the regulatory environment. Boards’ abilities to foster innovation clearly fall short when compared with their other activities.... View Details

Keywords: Dina Gerdeman

24 Feb 2009
First Look

First Look: February 24, 2009

Financial Cryptography and Data Security (forthcoming) Abstract Online advertisers face substantial difficulty in selecting and supervising small advertising partners. Fraud can be well hidden, and limited reputation systems reduce... View Details