Financial Regulation: Fit for the Future?
The Center for Financial Innovation and Stability (Federal Reserve Bank of Atlanta) and the Center for the Economic Analysis of Risk (Georgia State University) are organizing the conference “The Impact of Extraordinary Monetary Policy on the Financial,” to be held at the Federal Reserve Bank of Atlanta on the 2nd and 3rd of November 2017. The aim of the conference is to bring together economists, statisticians, finance professionals and regulators in order to discuss whether financial regulation as currently structured is appropriate for the financial system of the future.
Regulators around the world responded to the 2007-09 financial crisis with a determination to reduce the likelihood and potential impact of a future financial crisis. To this end, a variety of new measures are being implemented, including Basel III capital and liquidity, stress tests, living wills, restrictions on OTC derivatives, and stricter regulation of nonbank financial firms, Some argue that these measures have not gone far enough, and propose measures to break up large banks or require them to hold even more capital. However, financial firms and many others have argued that the pendulum has already swung too far in the direction of reregulation. As a result, they argue regulation is stifling financial firms’ ability to support their customers, the financial system and growth in the real economy. Further, some are questioning whether the traditional approach to regulation is inhibiting the development of new financial technologies that promise greater efficiency and perhaps increased safety. This conference seeks to look back to evaluate the benefits and the costs of enhanced post-crisis regulation as well as to look forward to the effect of regulations on the development of financial technology.