The Governance of Financial Regulation: Reform Lessons from the Recent Crisis

34 Pages Posted: 1 Dec 2010

See all articles by Ross Levine

Ross Levine

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

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Date Written: November 1, 2010

Abstract

There was a systemic failure of financial regulation: senior policymakers repeatedly enacted and implemented policies that destabilised the global financial system. They maintained these policies even as they learned of the consequences of their policies during the decade before the crisis. The crisis does not primarily reflect an absence of regulatory power, unclear lines of regulatory authority, capital account imbalances, or a lack of information by regulators. Rather, it represents the unwillingness of the policy apparatus to adapt to a dynamic, innovating financial system. A new institution is proposed to improve the design, implementation and modification of financial regulations.

Keywords: Financial Institutions, Regulation, Policy, Financial Crisis

JEL Classification: G20, G28, H1, E6

Suggested Citation

Levine, Ross Eric, The Governance of Financial Regulation: Reform Lessons from the Recent Crisis (November 1, 2010). BIS Working Paper No. 329. Available at SSRN: https://ssrn.com/abstract=1717806 or http://dx.doi.org/10.2139/ssrn.1717806

Ross Eric Levine (Contact Author)

University of California, Berkeley - Haas School of Business ( email )

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2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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