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Designing a Regulatory and Supervisory Framework for Integrated Financial Markets

  • Giorgio Di Giorgio
  • Carmine Di Noia
Chapter

Abstract

The financial crisis that started in 2007 casts doubt on the ability of national laws and competent authorities to manage the stability of the financial system and to protect investors. This is due to the relevant evolving features of financial intermediation – like the cross-border strategies in banking – with many M&As undertaken, especially in Europe, and more in general the globalization of finance, also through the many recent operations among exchanges. The associated regulatory and supervisory challenges have proved to be difficult to tackle. An international perspective is needed on single banking regulatory instruments, even if it is impossible at this stage to imagine unique rules and single international authorities managing capital ratios, deposit insurance, reserve requirements and lending of last resort, as well as other tools for ensuring financial markets stability. However, some common principles on regulation and the structure of supervision may be stated both in US and in Europe: we suggest a “four peak” approach to the matter.

Keywords

Monetary Policy Central Bank Euro Area Hedge Fund European Central Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgments

The opinions expressed are those of the authors and do not necessarily coincide with those of the institutions with which they are affiliated.

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Università LUISS Guido Carli, Facoltà di EconomiaItaly
  2. 2.Deputy Director General and Head of Capital Markets and Listed Companies at Associazione fra le Società Italiane per Azioni (Assonime).

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