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For And Against Regulation And In The Light Of This Evaluate The Strengths And Weaknesses Of A Regulatory - Essay Example

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Masters
Essay
Finance & Accounting
Pages 9 (2259 words)

Summary

Running Head: Turner Review Name Institution Date Introduction The Turner Review was compiled and published in 2009 by Lord Turner. He is the chair person of the Financial Service Authority (FSA) in UK. The review outlines well reasoned and viable regulatory reforms for financial institutions as well as banks…

Extract of sample
For And Against Regulation And In The Light Of This Evaluate The Strengths And Weaknesses Of A Regulatory

The review proposes that in a bid to ensure regulation consistency, the UK should adopt a single regulator approach across business lines. The review further acknowledges that importance of having the central bank as a systemic regulator. The principle based and light touch regulations are discouraged by the review and instead, focus is directed on rule bases regulations which are more intensive that are geared toward an extensive systemic risk as well as macroeconomic policy. The review therefore provides financial institution and banks a prudential regulation for future operations. Discussion According to the review, the major factors that have drove the world in the current financial crisis include among others the increasing financial innovation, growth in the market size, as well as microeconomic imbalances thus, causing overall systemic risk increase. In light of the foregoing crisis there was a great need to revaluate the existing regulatory regime, for instance the assumption that markets function in an efficient and rational way. ...
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