Financial Regulation after the ‘Subprime’ crisis: what lessons can be learned and what reforms undertaken?

The financial crisis that started in 2007 revealed that monetary policy had to include the goal of financial stability and that institutions, whose problems were likely to spread to the entire financial system, had to be identified and supervised. It also showed that in a context, in which traditional financial crisis management doctrines and methods were changing, it was necessary to introduce new regulations and resolution mechanisms to limit moral hazard and the collective cost of support measures. Several global reforms have been undertaken in the area of financial regulation. In the European Union these notably include changes to legislation, the creation of a new supervisory structure and a transposition of new international standards. The paper brings an assessment of these reforms.

ESO: Key Source: The Euro Crisis http://www.europeansources.info/record/the-euro-crisis-key-sources/

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