Regulation of Financial Markets: A Focused Approach
13 Pages Posted: 17 Jul 2015
Date Written: 1998
Abstract
A new approach and a new mind-set are needed for the regulation of financial markets. Under our existing trajectory, regulation will become inefficient, unwieldy, and too costly as it attempts to deal with an ever–more complex financial system. Regulators ought to focus on what needs to be regulated, not simply on expanding regulatory oversight. Implicit in this mind-set is the idea that not everything must be regulated. A focused approach to regulation would separate what is regulated from what is not. Examples of how regulation can be more narrowly focused are given for banking, for securities markets, and for futures markets
Keywords: bank regulation, financial regulation, offshore offerings, Security and Exchange Commission
JEL Classification: G18, G28, G38
Suggested Citation: Suggested Citation