Systemic Risks and the Legalization of Accountable Transnational Financial Regulation
Posted: 24 Jun 2010 Last revised: 20 Jul 2010
Date Written: June 23, 2010
Transnational spillovers of systemic risks show that financial regulation is not simply sovereign power; it also shall be responsible to other states and individuals. Regulatory cooperation is necessary to ensure responsibility. However, dynamic regulatory interactions make financial regulation organized irresponsibility. Current arrangements dealing with financial crisis mainly focus on technical problems, and ignore the accountability mechanism of financial regulation. Such arrangements cannot effectively regulate systemic risks in the long run. This paper argues that accountable financial regulation and its legalization is an essential part of solutions to systemic risks, and suggests ways to legalize accountable financial regulation.
Keywords: Financial crisis, Accountability, Legalization, Financial regulation, Systemic Risk
JEL Classification: F30, F33, F34, F36, K33
Suggested Citation: Suggested Citation