The Great Recession produced a number of aftershocks, including a tidal wave of regulations (with the?) intent on preventing the same event from ever happening again. A mismatch between increasingly complex and detailed international standards and ever more uneven implementation by national authorities ensued. Consistent, harmonized adoption of financial standards by all involved is necessary to ensure smooth global processes. Some suggestions are presented in this article.
The global financial crisis of 2007-08 left many marks behind, not the least of which has been increasingly complex financial regulation that has not been easy to uniformly enforce; meanwhile, digital technology is looming ever larger but has been relatively ignored by regulators, who are still coping with the decade-old crisis. The international regulatory debate should move towards a more forward-looking approach.
The Banking Union project, launched in the summer of 2012, was key to reversing the fragmentation trends that were threatening the Eurozone at the time.
In the aftermath of the global financial crisis, it became clear that banking resolution was one of the key aspects of the necessary reform of financial regulation, with the objective of reducing the cost of banking crises and avoiding the use of taxpayers’ money. In the case of global banks, the cross-border dimension added a new layer of complexity to these debates.