Editorial: Policy Responses to the Great Financial Crisis
David T. Llewellyn, Maria J. Nieto, Thomas F. Huertas and Charles Enoch (2017) "Editorial", Journal of Financial Regulation and Compliance, Vol. 25 No. 3, pp. 230-235. DOI:10.1108/JFRC-05-2017-0043
Posted: 5 Aug 2019
Date Written: June 30, 2017
The Great Financial Crisis triggered an ongoing assessment of what went wrong, and what can be done going forward, to prevent a similar financial crisis. This assessment has driven a broad policy response in the realms of monetary and fiscal policy and financial regulation and supervision. To a very large degree, policymakers developed these answers in common, in response to the mandate given to them by G-20leaders. The answers were also based on a common recognition that the numerous and far-reaching benefits of financial integration are not without risks, in particular, the risk of contagion and the possibility of a landscape of future domestic, regional and global systemic crises. The policy response was twofold: unprecedented monetary and fiscal stimulus as well as extensive reform of prudential regulation. The latter focused on (1) strengthening banks’ global capital framework and bolstering liquidity; (2) dealing with moral hazard and Too Big to Fail (TBTF) policies; and (3) making markets robust.
Keywords: banking, regulation, capital, liquidity, supervision, financial stability, macro-prudential, conduct, resolution, recovery
JEL Classification: E32, E44, E58, G01, G18, G21, G28, G32, G33, G35, G38
Suggested Citation: Suggested Citation