scholarly journals Financial Regulation: Still Unsettled a Decade After the Crisis

2019 ◽  
Vol 33 (1) ◽  
pp. 61-80 ◽  
Author(s):  
Daniel K. Tarullo
Keyword(s):  
Financial Stability ◽  
Financial Regulation ◽  
Legal Framework ◽  
Regulatory Framework ◽  
The Political ◽  
Shadow Banking ◽  
Unfinished Business ◽  
Short Term ◽  
The Us ◽  
The Moment

A decade after the darkest moments of the financial crisis, both the US financial system and the legal framework for its regulation are still in flux. The post-crisis regulatory framework has made systemically important banks much more resilient. They are substantially better capitalized and less dependent on runnable short-term funding. But the current regulatory framework does not deal effectively with threats to financial stability outside the perimeter of regulated banking organizations, notably from forms of shadow banking. Moreover, with the political tide having for the moment turned decisively toward deregulation, there is some question whether the resiliency improvements of the largest banks will be preserved. This article assesses the accomplishments, unfinished business, and outstanding issues in the post-crisis approach to prudential regulation.

History of Financial Regulation in Australia, United States, and United Kingdom

2014 ◽  
pp. 16-34 ◽  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Financial Stability ◽  
Financial Regulation ◽  
Self Regulation ◽  
Regulatory Changes ◽  
The Us ◽  
History Of ◽  
Carry Over ◽  
And Control

The economic hypotheses and policy stances of each of the various economic schools of thought carry over to theories of financial regulation. The empirical cases observed in the US, UK and Australia show the unravelling of financial stability by the see-saw between command-and-control and voluntary forms of self-regulation. This chapter traces the pertinent events with a focus on the regulatory changes during and after the 1980s.

High Frequency Trading and Circuit Breakers in the EU

2018 ◽  
pp. 308-331
Author(s):  
Steffen Kern ◽  
Giuseppe Loiacono
Keyword(s):  
High Frequency ◽  
Financial Stability ◽  
Investor Protection ◽  
Legal Framework ◽  
Regulatory Framework ◽  
High Frequency Trading ◽  
Circuit Breakers ◽  
Market Order ◽  
Securities Trading ◽  
The Eu

This chapter reviews the fundamental workings of the EU regulatory framework and its implications for high frequency trading (HFT) and the latest findings on the market realities in the EU. Over the last decade, securities trading landscapes have undergone significant change, with the emergence of HFT being one of the most important developments in this context. At the same time, the EU has made landmark legislative advances with the aim of increasing investor protection, market order, and financial stability, and of containing risks in those areas. As the new MiFID2 legal framework takes effect, a wealth of new data and evidence will become available in coming years that will improve understanding of HFT patterns, the effectiveness of circuit breakers, and their optimal calibration.

Bolstering the Proliferation Security Initiative at Sea: A Comparative Analysis of Ship-boarding as a Bilateral and Multilateral Implementing Mechanism

2006 ◽  
Vol 75 (2) ◽  
pp. 249-278 ◽  
Author(s):  
Fabio Spadi
Keyword(s):  
Comparative Analysis ◽  
Legal System ◽  
Legal Framework ◽  
The Political ◽  
The Us ◽  
Multilateral Agreements ◽  
Key Concepts ◽  
International Legal System ◽  
Proliferation Security Initiative ◽  
Definition Of

AbstractThe political significance of the PSI – and the implementation thereof – cannot reap its maximum potential if it is not supported by an adequate legal framework to regulate, inter alia, the interdiction of suspect vessels. The US Administration, very much the leading actor behind the Initiative, has been at the forefront of the efforts to develop an accompanying and effective international legal system, both at bilateral and multilateral levels, following the blueprint of what has already been accomplished in the area of counter-narcotics interdiction. However, the consent of the States involved remains paramount even within the context of the bilateral and multilateral agreements elaborated so far. These agreements, which are examined and compared in the article, in many ways do not attain the same sophistication as that of the counter-narcotics agreements. This is probably unavoidable, in light of the largely discretionary nature of the key concepts of the PSI, such as the definition of what are States or non-State actors of proliferation concern.

Regulatory Developments in Peer-to-Peer (P2P) Lending to Combat Frauds

2021 ◽  
pp. 172-194
Author(s):  
Poshan Yu ◽  
Yingzi Hu ◽  
Maimoona Waseem ◽  
Abdul Rafay
Keyword(s):  
Case Report ◽  
Financial Institutions ◽  
Credit Market ◽  
Legal Framework ◽  
Regulatory Framework ◽  
Theoretical Contribution ◽  
Regulatory Changes ◽  
The Us ◽  
P2p Lending ◽  
The Uk

Internet lending is a unique form of the credit market for bypassing banks in which borrowers generate online microloans without leverage or intermediation from financial institutions. Unlike the UK and the US, the Chinese P2P lending market is broader. Although the regulations concerning P2P lending are more comprehensive since 2015, there remains some regulatory gaps and failures, thus identifying these remaining regulatory gaps can help perfect the regulatory framework. This chapter provides a more detailed analysis and an examination of the Chinese legal framework related to P2P lending and identifying the vacuums in the existing framework. The theoretical contribution is primarily to the implications of the latest development of regulatory changes and the established individual credit reference system in China. Furthermore, the chapter also discovered three new regulatory vacuums (i.e., platform exit, a case report of financial crime, and consumer education), thus concluding with detailed insights on future approach towards perfecting the regulatory framework.

China's new finance regulator will gain real power

2017 ◽  
Keyword(s):  
Financial Stability ◽  
Financial Regulation ◽  
Debt Management ◽  
Shadow Banking ◽  
Equity Financing ◽  
Public And Private ◽  
Financial Reforms ◽  
Content Type ◽  
Government Relations ◽  
Local Officials

Subject Reform of financial regulation in China. Significance The National Financial Work Conference, a secretive five-yearly meeting that decides on major financial reforms, was finally held on July 14 and 15, after being delayed twice. The Conference established a Financial Stability and Development Committee under the State Council that will work to ensure better regulatory coordination to tackle debt and shadow banking risks. Impacts 'Financial reform' now means regulation rather than opening; measures such as renminbi internationalisation will be slower and more prudent. More heads will roll in the financial sector (public and private), given enhanced accountability for wrongdoing or risk-prone actions. Foreign financial institutions will need to rethink their government relations strategy and readjust to the role of the new stakeholder. Approvals for stock market listings will sustain their current momentum as direct financing, especially equity financing, is encouraged. Local government debt will likely decrease now that local officials have lifelong liability for bad debt-management decisions.

Making states and breaking states: Kosovo and the Caucasus in 2008: Introduction

2012 ◽  
Vol 40 (5) ◽  
pp. 657-660
Author(s):  
Ronald Grigor Suny ◽  
Vicken Cheterian
Keyword(s):  
Soviet Union ◽  
The Political ◽  
The West ◽  
The Caucasus ◽  
Federal States ◽  
The Soviet Union ◽  
The Us ◽  
The Moment ◽  
The Uk ◽  
Rules Set

Two events in 2008 shaped the political map of the Caucasus: the West's decision on the independence of Kosovo and the Russo-Georgian War. First, on 17 February, Kosovo authorities unilaterally declared the independence of what was at the time a UN protectorate. This declaration enjoyed much support in the West, including near-immediate recognition by key states such as the US, Germany, France, the UK, and a dozen others. But it also faced strong opposition from Serbia and Russia and strong skepticism from prowestern countries such as Georgia. Russia opposed not only the Kosovo declaration itself but more importantly the western adoption of it. From the Russian perspective, by supporting Kosovo's accession to sovereignty western states were violating the rules set at the moment of collapse of the federal states of Yugoslavia and the Soviet Union: to invite the former union republics to join the international clubs of sovereign states, but not extend such invitation to any other sub-units. In other words, Azerbaijan, Croatia, Kazakhstan, and Russia became members of the United Nations, but sub-entities like Chechnya, Kosovo, or Tatarstan did not receive the same recognition.

scholarly journals Financial Markets: From the “Tragedy of Commons” to Balanced Regulation

2020 ◽  
Vol 15 (2) ◽  
pp. 173-190
Author(s):  
Anastasia Podrugina ◽  
◽  
Anton Tabakh ◽  
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Regulation ◽  
Financial System ◽  
Political Influence ◽  
Regulation System ◽  
Shadow Banking ◽  
Financial Industry ◽  
Tax Legislation

Nowadays the global financial system faces a triple challenge: the threat of a new systemic financial crisis at both global and regional levels; difficulties of constant adaptation of existing financial business and regulatory practices to intensive technological innovations; direct and hidden consequences of excessive political influence on the financial system through sanctions and selectively applied practices for sanction purposes. Improving the quality of financial regulation will require deeper cooperation between regulators of leading economies and a proactive position of the financial industry, as well as the decentralization of financial regulation. However, it is unlikely that this will happen at the global level. Financial stability became a key goal of global financial regulation in the post-crisis period. We consider financial stability as the «tragedy of commons». The article describes the main trends of financial markets regulation after the crisis: transformation of global financial architecture, anti-money laundering and counter-terrorism financing practices (AML/ CT), financial sanctions. The article analyzes the existing failures of modern post-crisis financial regulation: credit crunch, reduction in the effectiveness of monetary policy, regulatory arbitrage, and increased compliance costs (AML/CT legislation, tax legislation, and the sanctions regime). In the future we expect simultaneous trends of harmonization and standardization of requirements in traditional sectors of financial markets (including traditional institutions of the shadow banking sector), but at the same time regulatory arbitrage1 will induce new financial technologies in order to reduce regulatory costs. The crisis triggered by the coronavirus pandemic in 2020 despite its non-financial nature will almost inevitably have a major impact on financial markets and their regulation. Possible steps to eliminate failures in the financial regulation system are proposed, including recommendations for international organizations.

scholarly journals Overhauling China’s Financial Stability Regulation: Policy Riddles and Regulatory Dilemmas

2017 ◽  
Vol 4 (1) ◽  
pp. 1-57 ◽  
Author(s):  
Emilios AVGOULEAS ◽  
Duoqi XU
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Financial Regulation ◽  
Banking System ◽  
Big Bang ◽  
Shadow Banking ◽  
Financial Repression ◽  
Leverage Ratio ◽  
Regulation Policy ◽  
Shadow Banking System

AbstractChina faces a number of important financial-stability risks. A persistent feature of the Chinese banking sector is the rapid formation of non-performing loans (NPLs) during each business cycle. Moreover, lending restrictions and interest-rate caps (“financial repression”) have, in part, given rise to an ever-expanding shadow-banking sector. The article highlights five cardinal sins within the Chinese financial system: (1) bad lending practices by the regulated sector, (2) lax governance, (3) a shadow-banking system that is dominated by short-term claims with no liquidity backstop, (4) stark lack of transparency in the shadow sector, and (5) very high levels of interconnectedness between the shadow and the regulated sector. The article suggests that some of these problems will be alleviated through a regulatory big bang that would abolish the current silo approach to financial regulation streamlining financial stability and conduct/consumer-protection supervision. Furthermore, we recommend the introduction of a binding and all-encompassing leverage ratio that will require banks to hold much higher capital buffers as a means to boost bank resilience, reduce NPLs, and battle interconnectedness with the shadow sector.

Monetary Policy, Financial Regulation and Financial Stability: A Comparison between the Fed and the ECB in the Wake of the Global Financial Crisis

ORDO ◽  
2020 ◽  
Vol 71 (1) ◽  
pp. 180-210
Author(s):  
Gunther Schnabl ◽  
Nils Sonnenberg
Keyword(s):  
Economic Theory ◽  
Euro Area ◽  
Federal Reserve ◽  
Financial Stability ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Subprime Crisis ◽  
The Us ◽  
The Impact

Abstract The paper discusses in light of Austrian and Keynesian economic theory the impact of conventional and unconventional monetary policies as therapies for financial crises. It reviews the financial market stabilization measures of the Federal Reserve System and the Eurosystem in response to the US subprime crisis and the European financial and debt crisis. It shows that stabilization measures both in the US and the euro area are based on Keynesian thinking, whereas longer-term consequences of financial stabilization measures tend to be neglected. It is argued that the Federal Reserve System’s crisis measures were more directed towards stabilizing the banking system, whereas the European Central Bank first and foremost focused on debt sustainability of euro area crisis countries. In both cases, household credit growth remained under control despite renewed monetary expansion, while new imbalances emerged in the banking and corporate sector as suggested by Austrian economic theory.

Divergences between EU and US in the Financial Regulation

2016 ◽  
Vol 7 (2) ◽  
pp. 285-289 ◽  
Author(s):  
Sara Pugliese
Keyword(s):  
Financial Stability ◽  
Financial Regulation ◽  
Market Access ◽  
Financial Supervision ◽  
Risk Regulation ◽  
The Us ◽  
Two Systems ◽  
Eu And Us ◽  
Financial Relationship ◽  
The Eu

Financial regulation is an issue where differences between the EU and US are highly sensitive. Indeed, EU and US apply in a different manner the financial standards adopted at international level by the Basel Committee and have different systems of financial supervision.Due to these significant differences between the two systems, it is very difficult for the EU and US to reach an agreement on common financial standards within the TTIP negotiations. Actually, as the differences in regulation between the two systems are an obstacle to the access of the financial operators of each Party to the market of the other Party, the absence of common standards in this sector could nullify the efficacy of norms of market access that will be probably contained within the TTIP.Moreover, in a risk regulation perspective, considering the weight that the US and EU financial relationship have on the global system and taking account of the effect of destabilization that could be generated by the divergent requirements imposed to the credit institutions on the two sides of the Atlantic, the lack of common financial standards between the EU and US could have a great impact on global financial stability.

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