A meeting on financial regulation as a key element in solving the Euro crisis and the second in our global financial regulation roundtable series with Grahambishop.com.
Analysing current efforts to supervise financial markets in the European Union and its member states we examined how new regulatory legislation is being implemented and whether we are moving towards regulatory convergence around the world, in particular in the EU, US and Asia.
Speakers:
- Emil Paulis, Director General, Financial Markets at the European Commission
- Eleni Dendrinou-Louri, Deputy Governor of the Bank of Greece
- Rafael Domenech Vilarino, Chief Economist for Developed Economies of the Banco Bilbao Vizcaya
- Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank
Key points:
- The magnitude of changes to the regulation of the financial structure in the EU is becoming ever clearer. It may be obscured by the piecemeal approach adopted in the EU – rather than the US approach of a single omnibus high level measure. But there can be no doubt of the scale. Questions remain though over which is the best approach?
- The interaction of the EU with its global partners was a recurrent theme as the EU is now a major player on the world stage – and this would be even clearer if the EU were operating as a genuine single market. But that raised many issue about how to create a level playing field within Europe that was then applicable to outsiders – and to outsiders wishing to operate in the EU.
- There is a complex economic interaction that may be triggered by the new Basel rules on bank liquidity and capital – in combination with the Solvency II rules for insurance company investment and capital regime. The implications for economic growth of a de-leveraging of the banking system are profound but there may be unintended.
