The Management of Systemic Risk from a Legal Perspective
22 Pages Posted: 10 Jan 2015
Date Written: January 8, 2015
This Paper deals with the aims of financial stability, the legal framework and the micro and macroprudential financial supervision concerning it, and the recourse of participants against this kind of regulatory oversight. It discusses the different objectives of these two types of supervision, brakes them down, and relates them to the legal framework that surrounds them and the recourse that may be expected. It notes the steady increase in regulatory discretion in Europe and the related weakening of these recourse facilities. For the eurozone, it is in this connection especially critical of the many regulatory and supervision functions that are now combined in the European Central Bank which is largely given immunity for all it does.
Keywords: financial regulation, financial stability, legal recourse, regulatory discretion, role of ECB
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