Book contents
- Frontmatter
- Dedication
- Contents
- List of Cases
- List of Instruments
- Chapter 1 Introduction and Background
- Chapter 2 A Macroprudential Mandate: How to Operationalise it
- Chapter 3 Institutional and Procedural Design for Macroprudential Regimes: Institutional Models and the Nature of the Decision-Making Process
- Chapter 4 Powers of Macroprudential Authorities and the Use of Soft Law
- Chapter 5 Formulating a Taxonomy of Supervisory Approaches in Macroprudential Policymaking
- Chapter 6 Activating and Calibrating Macroprudential Instruments
- Chapter 7 Independence, Accountability and Transparency of Macroprudential Policy
- Chapter 8 A Non-Dichotomous View of Macroprudential Policy and Other Policy Areas
- Chapter 9 Data Collection and Analysis in Macroprudential Policy: An Epistemic View
- Chapter 10 Th e Global Architecture of Systemic Risk Regulation and Supervision
- Index
- About the Author
Chapter 10 - Th e Global Architecture of Systemic Risk Regulation and Supervision
Published online by Cambridge University Press: 03 October 2020
- Frontmatter
- Dedication
- Contents
- List of Cases
- List of Instruments
- Chapter 1 Introduction and Background
- Chapter 2 A Macroprudential Mandate: How to Operationalise it
- Chapter 3 Institutional and Procedural Design for Macroprudential Regimes: Institutional Models and the Nature of the Decision-Making Process
- Chapter 4 Powers of Macroprudential Authorities and the Use of Soft Law
- Chapter 5 Formulating a Taxonomy of Supervisory Approaches in Macroprudential Policymaking
- Chapter 6 Activating and Calibrating Macroprudential Instruments
- Chapter 7 Independence, Accountability and Transparency of Macroprudential Policy
- Chapter 8 A Non-Dichotomous View of Macroprudential Policy and Other Policy Areas
- Chapter 9 Data Collection and Analysis in Macroprudential Policy: An Epistemic View
- Chapter 10 Th e Global Architecture of Systemic Risk Regulation and Supervision
- Index
- About the Author
Summary
This chapter moves away from the domestic and regional legal and institutional macroprudential arrangements to the emerging global regulatory architecture for the regulation and supervision of systemic risk. The 2007 – 2009 global financial crisis, as well as the sovereign debt crisis in the euro area that began in 2009, strongly demonstrated how systemic risks are not contained within borders and how imbalances can easily spill over from one jurisdiction to another. Therefore, the reforms that took place in recent years in this sphere, both in expanding the corpus of international financial standards and changes in membership, governance and monitoring by international institutions, is natural. Whilst some scholars suggest that a more homogenised and centralised international regulatory order is needed to effectively prevent or mitigate systemic risk, this chapter suggests that the incremental and depolarised structure of the global architecture of systemic risk regulation and supervision is not the crux of the problem. Still, there are areas that call for improvements such as enhancing inclusiveness, legitimacy and accountability of these international institutions. In particular, the political character of the FSB that is accountable to the G-20 does not go hand in hand with the nature of macroprudential regulation and supervision given the need to have a certain degree of autonomy to sound the sirens of systemic risk.
The aim of this chapter is to connect the scholarly literature on the adoption and development of global financial standards with the insights gathered so far in the book on macroprudential policy.
It shows that the unique nature of the macroprudential perspective, being context-dependent and often, unpopular, and the changing nature of globalisation brings about the need to tailor specific governance and accountability arrangements to enhance the effectiveness of any global regime.
This chapter proceeds as follows. Section 1 begins by briefly tracing the development of the global financial regulatory architecture and its components (agenda setters, standards setters and institutions promoting compliance ) and introduces the reforms that took place following the 2007 – 2009 financial crisis.
The crisis exposed the international dimension of systemic risk and the urgent need to effectively frame and govern it at that level.
- Type
- Chapter
- Information
- Legal Foundations of Macroprudential PolicyAn Interdisciplinary Approach, pp. 295 - 328Publisher: IntersentiaPrint publication year: 2020