Whither the ‘New Finance’? A Synthesis of Issues and an Essay of Reflection

Abstract

The 1980s have been witnessing important changes in financial markets. These changes have been affecting the conduct of banking and other financial activities, as well as the formulation and implementation of monetary policy and of regulatory principles. This essay reflects succinctly on major issues which have been raised at the HEC International Banking Colloquium in 1986, and which are of general interest to the world financial community: notably central bankers, commercial bankers, investment bankers and executives of financial services conglomerates. Though the dominant active institutions are those of developed market economies, developing countries have been represented at the colloquium by a number of governors of central banks and executives of commercial or developmental institutions.