Financial and Banking Regulation

1

• Financial and Banking Regulation
•  
• By C.A.E. Goodhart
• Financial Markets Group
• London School of Economics
•  
• Financial pressures in Europe, sovereign crisis,
  national responsibility for bank resolution,
  deleveraging and regulation are leading to a
  reversal of financial/banking integration.
•  
• European supervision requires European resolution
  which requires European fiscal competences
  (taxes/borrowing).

2

• Unity in a heterogeneous system requires the
  application of common principles in a way that
  meets differing regional/sectoral/institutional
  requirements. But will macro-prudential measures
  be used enough?
•  
• Ratio controls need review and reconsideration.
  How deleveraging has been handled. How it should
  have been handled. How it should be recast in
  future.
•