Data-Intensive Regulation of Financial Services: The Path to More Resilient Regulatory Analytics
Quarterly Journal of Central Banking, 2011
10 Pages Posted: 8 Oct 2011
Date Written: October 7, 2011
As we pass the three-year anniversary of the failure of Lehman Brothers and the subsequent banking and sovereign debt crises in the advanced economies, it is useful to reflect on progress made. Despite some significant progress made on the front of reinforcing regulatory and supervisory frameworks, much remains to be done to enhance practical application and deployment of the new stabilization regimes. This is because both regulators and banks continue to lack the tools and data to understand the system in its entirety, to price complex and mutually reinforcing risks, predict pathways for contagion and amplification of overall uncertainty within the financial system. We discuss some of the issues relating to future direction for enhancing data-intensive regulatory and supervisory analytics in financial services.
Keywords: data-intesity, dimensionality, systemic risk, financial services regulation, financial services supervision, predictive analytics
JEL Classification: E61, F33, G15, G18, G20, G28
Suggested Citation: Suggested Citation