Regulation-supervision: the post-crisis outlook

G. Pauget

Financial Stability Review, 2009, issue 13, 117-122

Abstract: Following the G20 summit in April 2009, the principles defined by the Heads of State and Government must be turned into operational rules. Over the coming period, the weaknesses of the regulation-supervision system need to be considered and the associated risks integrated into any new measures that are defined in the current environment. The current system has four major weaknesses: • limited coverage; • fragmentation; • heterogeneity; • pro-cyclicality There are five risks that need to be managed: • coordination between numerous bodies at multiple levels can render the system opaque and unresponsive; • the potential accumulation of regulatory capital requirements; • difficulty in establishing the relevant liquidity management tools; • the increasing complexity of prudential supervision rules may hamper financial innovation; • macroeconomic and microeconomic approaches are too frequently considered separately, preventing a proper assessment of the efficiency of monetary policy and its impact on the real economy.

Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... eview-13_2009-09.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfr:fisrev:2009:13:12

Access Statistics for this article

More articles in Financial Stability Review from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().