After years of post-Crisis discussion and debate, a new financial regulation structure has been put in place. The regulatory landscape, however, is still evolving as implementation issues are being worked out. This evolution is revealing overlaps, gaps and unintended consequences – both across regulatory silos (banking, insurance, market clearing, etc.) and across nations. There is thus an explicit need for research and debate on these interactions especially in the European context.
CEPR’s new Financial Regulation Initiative will promote such research in an environment that keeps a broad range of stakeholders engaged in the ongoing debate. Specifically, the Initiative will:
- Take a holistic and international approach that cuts across regulatory silos;
- Be forward-looking, addressing the fundamental issues of what banking, insurance, and financial market regulation should look like for the coming decades, and how financial regulation can be made more precise and efficient without overregulation; and
- Involve market participant, policymakers and academics in the discussion and analysis.
All the activity will be oriented to raising the level of the public debate on the rapidly evolving regulatory landscape.
The Initiative will focus on underlying issues rather than take a sectoral view. Where thus far regulation has considered individual rationality, the initiative will consider the regulation of collective risk-taking. It will first take stock of progress made in the seven years since the start of the crisis in order to see what has been achieved and what tasks are remaining.
The Initiative is led by Franklin Allen of Imperial College.
Many activities will take place in cooperation with the Brevan Howard Centre for Financial Analysis.