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Regulatory Reform: A Scorecard

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  • Cecchetti, Stephen
  • Schoenholtz, Kermit L.

Abstract

The financial crisis of 2007-09 revealed many deficiencies in the financial system. In response, authorities have implemented a wide range of regulatory reforms. We survey the reforms and offer our views on where there could be further improvements. While capital requirements and levels are far higher, they are not high enough. New liquidity requirements are useful, but need simplification. Shifting derivatives transactions to central counterparties has improved resilience, but also created indispensable financial market utilities that lack credible resolution and recovery regimes. And systemic (macroprudential) regulation lacks the metrics, policy tools, governance structure, and international cooperation needed to be effective.

Suggested Citation

  • Cecchetti, Stephen & Schoenholtz, Kermit L., 2017. "Regulatory Reform: A Scorecard," CEPR Discussion Papers 12465, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12465
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. From Basel to the Volcker Rule: A FinReg Glossary
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2018-11-19 13:24:10
    2. Bank Capital and Stress Tests: The Foundation of a Thriving Economy
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2018-07-23 11:26:07
    3. What Risk Professionals Want
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2019-03-11 12:59:36

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    Cited by:

    1. Martin Hodula & Zlatuše Komárková & Lukáš Pfeifer, 2021. "The relationship between capital and liquidity prudential instruments," Journal of Regulatory Economics, Springer, vol. 59(1), pages 47-70, February.

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    More about this item

    Keywords

    Financial regulation; Capital requirements; Liquidity requirements; Central clearing; Recovery and resolution planing; Macro-financial linkages; Macroprudential policy; Prudential regulation;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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