Principles of Financial Regulation

Description

The financial crisis of 2007-9 revealed serious failings in the regulation of financial institutions and markets, and prompted a fundamental reconsideration of the design of financial regulation. As the financial system has become ever-more complex and interconnected, the pace of evolution continues to accelerate. It is now clear that regulation must focus on the financial system as a whole, but this poses significant challenges for regulators.Principles of Financial Regulationdescribes how to address those challenges. Examining the subject from a holistic and multidisciplinary perspective,Principles of Financial Regulationconsiders the underlying policies and the objectives of regulation by drawing on economics, finance, and law methodologies. The volume examines regulation in a purposive and dynamic way by framing the book in terms of what the financial system does, rather than what financial regulation is. By analysing specific regulatory measures, the book provides readers to the opportunity to assess regulatory choices on specific policy issues and encourages critical reflection on the design of regulation. Contents Preface Acknowledgements List of Abbreviations Table of Cases Table of Legislation Guide to the Companion Website PART A FOUNDATIONS 1. Introduction 2. The Financial System 3. The Goals and Strategies of Financial Regulation 4. The Limits of Financial Regulation PART B FINANCIAL MARKETS 5. Theory of Financial Markets 6. Information Intermediaries 7. Market Structure 8. Issuer Disclosure Regulation 9. Trading and Market Integrity PART C CONSUMERS AND THE FINANCIAL SYSTEM 10. Regulating Consumer Finance 11. Financial Advice 12. Financial Products PART D BANKS 13. Theory of Banking 14. Capital Regulation 15. Liquidity Regulation 16. Bank Resolution 17. Bank Governance 18. Payment and Settlement Systems 19. The Macroprudential Approach PART E MARKETS AND BANKS 20. Market-Based Credit Intermediation: Shadow Banks and Systemic Risk 21. Making Markets 22. Asset Managers and Stability 23. Structural Regulation PART F THE MIX OF INSTITUTIONS 24. From Principles to Practice 25. The Political Economy of Financial Regulation 26. Supervision and Enforcement of Financial Regulation 27. Regulatory Architecture: What Matters? 28. International Regulatory Coordination 29. Conclusion—Designing Tomorrow’s Financial System Today