Simple rules for a complex regulatory world: the case of financial regulation

We study the reform of financial regulation initiated by the Dodd—Frank Wall Street Reform and Consumer Protection Act of 2010. Major factors impeding Obama’s financial and economic policy are explored, including institutional difficulties, party warfare, lobbyism, and systemic inconsistencies of international financial regulation. We also examine challenges that are being faced by economic and political sciences due to the changes in financial regulation and also assess the level of radicality of the financial reform.

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Basel III: In quest for criteria and scenarios of the banking regulation reform advancement

Voprosy Ekonomiki ◽

10.32609/0042-8736-2016-2-77-93 ◽

2016 ◽

pp. 77-93 ◽

Cited By ~ 1

Author(s):

E. Dzhagityan

Keyword(s):

Financial Regulation ◽

Cost Optimization ◽

Spillover Effect ◽

Regulatory Reform ◽

Banking Regulation ◽

Capital Adequacy ◽

Basel Iii ◽

Eurasian Economic Union ◽

Downward Pressure ◽

Crisis Recovery

The article looks into the spillover effect of the sweeping overhaul of financial regulation, also known as Basel III, for credit institutions. We found that new standards of capital adequacy will inevitably put downward pressure on ROE that in turn will further diminish post-crisis recovery of the banking industry. Under these circumstances, resilience of systemically important banks could be maintained through cost optimization, repricing, and return to homogeneity of their operating models, while application of macroprudential regulation by embedding it into new regulatory paradigm would minimize the effect of risk multiplication at micro level. Based on the research we develop recommendations for financial regulatory reform in Russia and for shaping integrated banking regulation in the Eurasian Economic Union (EAEU).

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