Avinash Persaud calls on regulators to address ‘system-wide' risk mismatches; slams Solvency II
Central bankers must look beyond banks' balance sheets to make system safer
The current thinking on macro-prudential policy is fixated with capital and the measurement of individual risks, rather than focusing on managing risk in the system, Avinash Persaud, a senior fellow at the Peterson Institute, writes in the latest issue of Central Banking journal.
"The global financial crisis settled the debate on the need for a macro-prudential dimension to regulatory policy, but it may have done so ahead of there being common ground on what exactly is systemic risk and how best
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