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The current state and future challenges of financial regulation

Beck, Thorsten, Carletti, Elena, Goldstein, Itay, (2016), “The current state and future challenges of financial regulation”, VoxEu, 22 Νοεμβρίου

The Global Crisis has led to a new wave of regulation. This column argues that improved capital requirements, liquidity requirements, bank resolution and cross-border regulatory cooperation are welcome, but that unresolved problems remain. Specifically, regulation may become too complex, focus too little on macroprudential risks, be inadequate to deal with crises in global financial institutions, or fail to cope with financial innovation.

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