New Landscape, New Challenges: Structural Change and Regulation in the U.S. Financial Sector

26 Pages Posted: 23 Aug 2007

See all articles by Ashok Vir Bhatia

Ashok Vir Bhatia

International Monetary Fund (IMF)

Date Written: August 2007

Abstract

Given the rapid evolution of the U.S. financial sector and attendant regulatory challenges, this paper explores ways to fine-tune U.S. oversight arrangements. It surveys the financial landscape, separating a highly regulated, multi-business, and (in terms of relative asset holdings) shrinking core from a lightly regulated, more specialized, and rapidly expanding periphery; explains the U.S. regulatory philosophy and structure, with its focus on core institutions and its jurisdictional complexity; highlights certain new challenges, without presuming to have all the solutions; draws out some broad policy implications, from the 30,000 foot level; and concludes by tabling and discussing one, specific, reform idea.

Keywords: Financial sector, United States, Bank supervision, Structural adjustment, Working Paper

Suggested Citation

Bhatia, Ashok Vir, New Landscape, New Challenges: Structural Change and Regulation in the U.S. Financial Sector (August 2007). IMF Working Paper No. 07/195, Available at SSRN: https://ssrn.com/abstract=1007943

Ashok Vir Bhatia (Contact Author)

International Monetary Fund (IMF) ( email )

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