Bank of France Financial Stability Review: the future of financial regulation
07 September 2009
Reforming the way finance is regulated involves some trade-offs like increasing the resilience of financial systems and ensuring they remain responsive to risks.
Reforming the way finance is regulated involves some trade-offs. One is between increasing the resilience of financial systems and ensuring they remain responsive to risks. In other words, we have to clarify our appetite for risk. Another trade-off is between financial competition and innovation, on the one hand, and standardisation and regulatory homogeneity, on the other hand. This means that we need to have a view on the degree of diversity in the financial industry that is optimal for financial stability.
The Bank of France presents a series of Articles on the future of financial regulation. The issues are all related to post-crisis regulation and are written by prominent authors from the financial sector including Christian Noyer, Claudio Borio, Jaime Caruana and others. The articles concern the following issues:
· The shadow banking system: implications for financial regulation
· Managing the transition to a safer financial system
· Reform of the global financial architecture: a new social contract between society and finance
· Implementing the macroprudential approach to financial regulation and supervision
· Minimising the impact of future financial crises: six key elements of regulatory reform we have to get right on the efficacy of financial regulations
· The treatment of distressed banks
· Credit default swaps and financial stability: risks and regulatory issues
· The future of financial regulation: an exchange of views
· Emerging contours of financial regulation: challenges and dynamics
· Regulation-supervision: the post-crisis outlook
· Beyond the crisis: the Basel Committee’s strategic response
