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 Regulation describes how to address those challenges.
Examining the subject from a holistic and multidisciplinary perspective, Principles of Financial Regulation considers 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.
1: Introduction
2: The Financial System
3: The Goals and Strategies of Financial Regulation
4: The Limits of Financial Regulation
5: Theory of Financial Markets
6: Market Structure
7: Information Intermediaries
8: Issuer Disclosure Regulation
9: Trading and Market Integrity
10: Regulating Consumer Finance
11: Consumer Financial Products
12: Financial Advice
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
20: Market Intermediation, Shadow Banking, and Systemic Risk
21: Making Markets
22: Asset Managers and Stability
23: Structural Regulation
24: Institutional Architecture: Embedding Regulatory Principles in 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