Weaknesses of Financial Market Regulation

Applied Economics and Finance, Vol. 5, No. 2; March 2018

9 Pages Posted: 1 May 2023

See all articles by Christian Conrad

Christian Conrad

University of Applied Science HTW Saarbrücken

Date Written: April 21, 2018

Abstract

In this paper we examine the extent newer developments affect the economic processes of the market and put financial markets at risk. We also analyze if the financial market regulations are sufficient to limit the systemic risk they cause. The biggest Shortcoming of the recent reforms to the stabilization of the financial system, such as Basel III and the American Dodd Frank Act, is that they increase the capital requirements rather than the causes of the increased risk. It would generally be better to forbid risky and complex financial products than to further increase regulation complexity and the capital requirements as in Basel III and the American Dodd Frank Act.

Keywords: derivatives, financial market regulation, ratings, value at risk, financial crisis, Basel III, Dodd Frank Act

JEL Classification: F55, G13, Q11, Q31

Suggested Citation

Conrad, Christian, Weaknesses of Financial Market Regulation (April 21, 2018). Applied Economics and Finance, Vol. 5, No. 2; March 2018, Available at SSRN: https://ssrn.com/abstract=4425656

Christian Conrad (Contact Author)

University of Applied Science HTW Saarbrücken ( email )

Saarbrücken, 66123
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
44
Abstract Views
220
PlumX Metrics