Implementation of Basel III in the US will bring back the regulatory arbitrage problems under Basel I
Takeo Hoshi 23 December 2012
Rejigging financial regulation is in vogue. But, in the world of international finance, how well do different regulatory systems join up? This column argues that the US Dodd Frank Act and Basel III are, in part, incompatible and that harmonising them may lead to unintended consequences. The US ought to tread carefully here but should also try hard to maintain the spirit of better financial regulation.
This column is a lead commentary in the VoxEU Debate "Banking reform: Do we know what has to be done?"
regulation, banks, Basel, Dodd-Frank, Finance
Mind the gap: Moving towards federal insurance regulation
Priya Nandita Pooran 14 November 2010
Will the US Dodd-Frank Act work? This column argues that unless institutional oversight shifts from the current fragmented structure to a federal one, the Dodd-Frank reforms could be prevented from having any significant positive effect on the surveillance of the financial system.
The European Parliament’s approval of the financial regulatory package for oversight of the financial system on 22 September 2010 marks a key moment in the integration of systemic risk in the supervisory approach for financial markets. The timing of the approval ultimately coincided with the approval of parallel measures in the US to address the myriad policy, regulatory, and institutional deficiencies that are perceived to have contributed to inadequate surveillance of the financial system.
Global economy International finance
US, financial regulation, Dodd-Frank
A critical assessment of the Dodd-Frank Wall Street Reform and Consumer Protection Act
Viral Acharya, Thomas F Cooley, Matthew Richardson, Richard Sylla, Ingo Walter 24 November 2010
Of the recent reforms to make financial systems more robust, the US Dodd-Frank Wall Street Reform and Consumer Protection Act stands out. Despite being broadly in favour of its proposals, this column identifies flaws in its design that fail to deal with the main causes of the crisis and that will lead to further implicit government guarantees.
As the world leaders gathered at the G20 summit to discuss how to bring the global imbalances into check, an equally important question has arisen. How to deal with the potential bubbles that might be caused by the highly accommodative monetary policies in the Western economies?
Financial markets Global crisis
financial regulation, global crisis, Dodd-Frank