Regulating the off-balance sheet exposure of banks: A comparison pre- and post-crisis

Policy Study

This paper, by Matthias Thiemann, deals with the off-balance sheet exposures of banks, which as the recent crisis has shown have grown remarkably over the course of the last 30 years. It first explains the linkages of the banking system to the shadow banking system. It focuses on the accounting and prudential treatment of a very important part of the shadow banking sector, the market for short term asset backed commercial paper. It traces the impact national regulators can have on the kind of engagements their banks have in these markets, their benefits on the whole economic process and their limitations.

Read the article by Matthias Thiemann