Financial Stability Authorities and Macroprudential Regulation

Banking & Finance Law Review, Vol. 32, No. 2, pp. 223-254, 2017

24 Pages Posted: 31 May 2017

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: May 30, 2017

Abstract

One of the key lessons to come from the global financial crisis (GFC) was that regulation in many jurisdictions was missing an overarching policy framework for financial stability. In response, reformers have increasingly looked to macroprudential policies to plug this regulatory gap. One common feature in the aftermath of the GFC has been for jurisdictions to create financial stability authorities so as to provide regulators with the power to regulate in a manner that prevents financial instability. This paper explores the establishment, rationale and operation of financial stability authorities in the UK and the USA and finds that despite ostensibly being created to deal with the same problem, the UK and USA financial stability authorities exhibit significant differences in their construction and authority, which may impact on their ability to address financial stability.

Keywords: financial stability; macroprudential policies; financial regulation

Suggested Citation

Godwin, Andrew and Kourabas, Steve and Ramsay, Ian, Financial Stability Authorities and Macroprudential Regulation (May 30, 2017). Banking & Finance Law Review, Vol. 32, No. 2, pp. 223-254, 2017. Available at SSRN: https://ssrn.com/abstract=2977122

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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