ICFR Regulatory Outlook 2012: Could domestic concerns derail international regulatory convergence?
Barbara Ridpath, chief executive of the International Centre of Financial Regulation (ICFR) believes that in 2012, trends in the structure of financial markets will continue to influence regulator priorities. January 17, 2012 | Barbara RidpathThe Macroeconomic and Political Environment: Policy Priorities 2012 will be dominated by the search for balance between financial stability concerns and the credit growth needs of the global economy. Concerns over the robustness of the global economy and the durability of the eurozone cast doubt over many regulatory proposals. Both Mr Draghi, President of the European Central Bank (ECB) and Mr Enria, Chairman of the European Banking Authority (EBA) have recently warned about the dangers of excessive deleveraging to meet regulatory targets. However, with bank market capitalisations at historic lows and bank funding precarious, squaring this circle will be one of the key challenges of 2012. National priorities will continue to rise in importance, due to both the practical problems of enacting international proposals and the pressures of election cycles. In 2011, the appetite for aggressive regulatory reform waned, efforts at global coordination faltered, and domestic economic and political issues took precedence as the crisis receded. Ultimately, recognition that the global interconnectedness of the financial system still represented a real threat reinvigorated the G20 agenda on regulatory reform in the autumn, despite mounting concern about economic prospects. Efforts to maintain momentum may struggle this year. The proliferation of regulatory initiatives made it easy to lose sight of the aims of regulatory reform.. In some cases regulatory measures seemed to be driven by populist politics rather than optimal policymaking, particularly in Europe and the United States. Against the background of the euro crisis, the UK has been engaged in a series of wrangles with its European neighbours over proposals ranging from capital requirements to derivatives legislation and financial transaction taxes. The UK at times seemed to have difficulty balancing its desires to ensure a safer and more stable financial sector (e.g. through impos... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Regulation, Risk and Regulationriskregulation,Risk and Regulation, Regulation,Risk and Regulation, Keywords:International Centre For Financial Regulation, Euro Debt Crisis, Inflation, European Central Bank, Financial Stability Board, GDP, Dodd-Frank Act International Centre for Financial Regulation, Euro Debt Crisis, Inflation, European Central Bank, Financial Stability Board, GDP, Dodd-Frank Act
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