The global financial crisis has highlighted the need to regulate and monitor risk allocation at the macro level. Therefore, in the aftermath of the worldwide turmoil, the international financial regulatory framework has been reformed adopting a new approach to financial regulation and supervision. This approach takes account the regulatory objective of “financial stability” from a macro-prudential perspective concerning the financial system as a whole, namely intended as “systemic stability”. Starting from this new prospective, this work aims at advancing the feasible future framework of financial regulation in the global context, identifying what seems to be - at least for the moment - the best model of financial regulation to assure a sound governance of global financial markets and, thus, a more crisis-resistant global financial system. This model should represent the most reasonable and feasible solution to the political “financial trilemma”, which states that financial stability, financial integration and national financial policies are conflicting. It is possible to combine any two of the three objectives but not all three: one has to give. In fact, financial integration of markets implies more freedom or lack of regulation (free regulation), and, consequently it compromises financial stability; national regulatory autonomy (territorial regulation) obstructs financial integration; financial stability, pursued by international guidelines (global or universal regulation) limits national autonomy. Therefore, assuming that free regulation has to be neglected, we are seeking to identify the best combination of national and global regulation to ensure a better governance of globalised financial markets, namely the extent to which one can go without obstructing the progress of the other.

Salerno, M.E. (2015). The objectives and the future of financial regulation in a worldwide context. DIRITTO DELLA BANCA E DEL MERCATO FINANZIARIO(1, parte I), 71-105.

The objectives and the future of financial regulation in a worldwide context

SALERNO, MARIA ELENA
2015-01-01

Abstract

The global financial crisis has highlighted the need to regulate and monitor risk allocation at the macro level. Therefore, in the aftermath of the worldwide turmoil, the international financial regulatory framework has been reformed adopting a new approach to financial regulation and supervision. This approach takes account the regulatory objective of “financial stability” from a macro-prudential perspective concerning the financial system as a whole, namely intended as “systemic stability”. Starting from this new prospective, this work aims at advancing the feasible future framework of financial regulation in the global context, identifying what seems to be - at least for the moment - the best model of financial regulation to assure a sound governance of global financial markets and, thus, a more crisis-resistant global financial system. This model should represent the most reasonable and feasible solution to the political “financial trilemma”, which states that financial stability, financial integration and national financial policies are conflicting. It is possible to combine any two of the three objectives but not all three: one has to give. In fact, financial integration of markets implies more freedom or lack of regulation (free regulation), and, consequently it compromises financial stability; national regulatory autonomy (territorial regulation) obstructs financial integration; financial stability, pursued by international guidelines (global or universal regulation) limits national autonomy. Therefore, assuming that free regulation has to be neglected, we are seeking to identify the best combination of national and global regulation to ensure a better governance of globalised financial markets, namely the extent to which one can go without obstructing the progress of the other.
2015
Salerno, M.E. (2015). The objectives and the future of financial regulation in a worldwide context. DIRITTO DELLA BANCA E DEL MERCATO FINANZIARIO(1, parte I), 71-105.
File in questo prodotto:
File Dimensione Formato  
DBMF 1_2015.pdf

non disponibili

Tipologia: PDF editoriale
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 337.17 kB
Formato Adobe PDF
337.17 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11365/979473