However, the waves of regulatory reforms seem to have taken economies beyond the 'tipping point' – the costs of ever more regulation have begun to exceed the benefits.
Regulatory reforms have exercised a substantial drag on economic growth, while their impact on the safety of the financial system remains uncertain.
This publication focuses on the cumulative impact of regulatory change for the banking sector on the wider economy – in particular, economic growth.
- Although much regulatory reform has already been hard-wired into E.U. and national legislation, there remains scope for adjustment.
- Institutions must focus on culture, behaviour, higher standards of corporate governance, risk management, customer treatment and disclosure.
- This will lead to regulators taking a less heavy handed approach and reduce overall burden of regulation.
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