Regulatory Issues Arising from Financial Integration

Abstract

This chapter explores issues for the regulatory structure arising from increased monetary and financial integration, especially in North America. It is written from a Canadian perspective and benefits from Canadian/U.S. experience. Regulatory-integration issues including Canada and Mexico have not been as prominent as yet. This chapter starts by briefly considering types of integration and a categorization of regulation. It then raises and discusses a number of implications for regulation arising from integration. Integration makes some risks more important than before; puts emphasis on the need to work out regulatory cooperation and reliance; requires improvements in the legal, institutional setup underpinning markets and regulation; and puts a premium on more effective international rule-setting.