The financial crisis of 2007-9 revealed serious failings in the
regulation of financial institutions and markets, and prompted a
fundamental reconsideration of the design of financial regulation. As
the financial system has become ever-more complex and interconnected,
the pace of evolution continues to accelerate. It is now clear that
regulation must focus on the financial system as a whole, but this poses
significant challenges for regulators. Principles of Financial
Regulation describes how to address those challenges.
Examining the subject from a holistic and multidisciplinary perspective,
Principles of Financial Regulation considers the underlying policies
and the objectives of regulation by drawing on economics, finance, and
law methodologies. The volume examines regulation in a purposive and
dynamic way by framing the book in terms of what the financial system
does, rather than what financial regulation is. By analysing specific
regulatory measures, the book provides readers to the opportunity to
assess regulatory choices on specific policy issues and encourages
critical reflection on the design of regulation.