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
 
Full report