The Covid crisis has shown that the reform of international financial regulation in recent years has not corrected the procyclicality of the financial system. On the contrary, this problem has worsened as a result of the new accounting standards. This article explores the reasons for this and possible policy measures to address the problem, including a more rules-based approach to macroprudential policies and a rebalancing between countercyclical and structural buffers in favor of the former.
The New Swiss Rules for International Financial-Services Providers Having Clients in Switzerland and Producers of Financial Instruments for the Swiss Market
With the introduction of the Financial Services Act (FinSA) in Switzerland, the regulatory noose is tightening for international providers of financial services to Swiss clients. Although FinSA will not be fully implemented until January 1, 2020, preparations are well underway, and affected providers will need to study up on the new rules to ensure they are in full compliance—or face punishing penalties.
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.
Financial Regulation—How to Find a Balance Between Costs and Benefits? Status quo, and possible ways forward
The decade following the financial crisis unleashed a torrent of regulatory requirements. Financial institutions have spent billions on technology and operations to achieve regulatory compliance; the frequency of new requirements is high. Despite all of this, regulators have not been satisfied with the quality of the data and level of transparency. How can banks and regulators strike a balance between the costs and the benefits of regulation?