The financial crisis posed one of the greatest challenges to economists as well as policy-makers in decades. Its depth, length and severity has led to a restructuring of regulation at the national, regional and international levels, as well as the introduction of new norms and recommendations, all with the aim of preventing and managing future potential crises.
The G20 declared in 2008 its aim of promoting a new body of financial regulation so that a crisis of the scale witnessed would not be repeated. Since then, the G20 has included financial regulation in multiple work sessions and has elaborated a series of recommendations, the so- called “Basel III”, in conjunction with the Basel Committee on Banking Supervision (BCBS), which were published in December 2010. These recommendations establish more demanding capital requirements and introduce a new global framework on liquidity.
At the European level, the European Commission has called for a Banking Union which is to fortify the financial sector. It also actively participated in Basel III activities and started to undertake, in parallel with those international developments, a significant reform of the requirements and the prudential supervision of credit entities, as well as the development of procedures for the management and coordination of any future banking crisis in the European Union. The aim is to establish a common area of protection with a single framework and mechanisms of centralized supervision.
The Chinese presidency of the G20 in 2016 continues to further reform the global financial system: work progresses on implementing norms and rules in the attempt to ensure stability and resilience of the world financial system with the aim of avoiding another crisis of the scale of the recent one. The focus is principally on new risks and prudential regulation. At the European level, challenges remain to continue constructing the Single Market, Banking Union and a single supervisory mechanism, not forgetting that one of the priorities of the European Banking Authority should be to protect the consumer.
Hence, the recent period has witnessed implementation of a significant volume of norms and rules, at the national, regional and international levels, all with the aim of avoiding another crisis, though these changes may all have unintended or secondary consequences for the economy. Indeed one of the greatest challenges is to find the right balance between regulation and driving the economy, as well as finding sufficient political will to strike this balance.
In the light of the abovementioned developments, a special issue of the Journal of Economic Policy Reform aims to provide a timely and comprehensive overview into the changing regulatory landscape and the practice of regulation / norm-building since the financial crisis. It is envisaged that the contributions contained in the special issue will engage and inform current and emerging debate on the success and failure of new regulatory developments and their overall impact on banking, financial and economic systems.
Submissions may address topics that include, but are not limited to:
- Impact and effectiveness of Basel 3 & Dodd Frank
- European Banking Union
- Bank / financial firm resolution regimes
- Regulation of credit rating agencies
- Executive compensation and corporate governance of financial institutions
- Fair value accounting for the case of banks and other financial institutions
- Consumer protection in the financial services area
- Liquidity and capital management
- Changing business models
- Risk measurement and management
- Shadow banking and systemic institutions
Papers will preferably be comparative and focus at the regional or international levels. Papers should normally be theoretically informed but empirically focused. Maximum length is 8000 words including tables and graphs. Full papers should be uploaded to the J of Economic Policy Reform submission website at https://mc.manuscriptcentral.com/gpre ensuring the paper is marked as for consideration for the special issue on or before 1 November 2016. A workshop will be organised by the Santander Financial Institute project “Global Banks Project” in Santander, Spain, in the Autumn 2016 (date to be confirmed). Participation at the workshop is not obligatory in order to participate in the special issue. Papers that are positively reviewed on the JEPR peer review platform will be either accepted into the special issue or follow as individual papers in regular JEPR issues.