Twin Peaks and Financial Regulation: The Challenges of Increasing Regulatory Overlap and Expanding Responsibilities

The International Lawyer, Vol. 49, No. 3, pp. 273-297, 2016

26 Pages Posted: 24 Dec 2016

See all articles by Andrew Godwin

Andrew Godwin

Melbourne Law School

Steve Kourabas

Monash University - Faculty of Law

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: December 23, 2016

Abstract

In recent years there has been a renewed emphasis on improving the regulatory frameworks of financial systems in part as a response to the global financial crisis. This has included a focus on how institutional design can promote financial stability. Support for the continued importance of institutional design in financial stability has often looked to the relatively positive performance during the financial crisis of some countries, including Australia, which have implemented the so-called ‘Twin Peaks’ model of financial infrastructure. This has led several countries to consider adopting various forms of the Twin Peaks model. The authors examine how the Twin Peaks model in Australia has responded to financial collapses and challenges since its implementation. They argue that Australia’s experience indicates continuing challenges for regulators in coordinating regulatory functions and resolving issues concerning the nature and scope of functions of regulators. The analysis may assist reformers in other countries looking to the Twin Peaks model to address regulatory problems.

Keywords: financial regulation, financial stability, twin peaks

Suggested Citation

Godwin, Andrew and Kourabas, Steve and Ramsay, Ian, Twin Peaks and Financial Regulation: The Challenges of Increasing Regulatory Overlap and Expanding Responsibilities (December 23, 2016). The International Lawyer, Vol. 49, No. 3, pp. 273-297, 2016. Available at SSRN: https://ssrn.com/abstract=2889536

Andrew Godwin

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Steve Kourabas

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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