REGULATION

The Draghi report on The Future of European Competitiveness is a milestone. Cristina Caffarra argues that not delivering on innovation and growth is the key takeaway, and is not a prescription to relax...

The Prudential Regulation Authority has published its near-final Basel 3.1 rules. Phil Evans explains why the package of reforms is needed, arguing it supports the UK’s growth, competitiveness and the...

Bank capital is a key component of the financial system. Michael Barr outlines a sweeping overhaul easing two major draft bank capital rules

The rapid adoption of artificial intelligence is transforming the financial industry. Jon Danielsson and Andreas Uthemann argue that AI may either increase systemic financial risk or act to stabilise the...

Financial integration and financial stability are key to ensuring a resilient and prosperous future for Europe. Luis de Guindos discusses the pivotal issues shaping the financial landscape of the EU

The Basel III ‘endgame’ standards are to be implemented. Michelle Bowman considers the potential consequences of bank capital reform measures, both in the United States and around the world

Michelle Bowman focuses on financial technology innovations and the developing financial regulatory framework, which should be dynamic and one that can accommodate new technology and services

Jon Danielsson argues that failures in regulation is a key reason for financial crises, and proposes that the financial authorities instead adopt diversification to build a more resilient financial sy...

Recent developments in technology and AI provide huge potential for innovation and productivity growth. Randall Kroszner discusses the opportunities and risks of financial technology and AI

The EU has enacted new rules that overhaul the Stability and Growth Pact. Lucio Pench considers the issues that need to be addressed to ensure the new fiscal rules succeed

Financial technology is evolving. Michelle Bowman discusses how technology can enhance financial services in a manner that is consistent with operating in the highly regulated banking industry

The growing digitalisation of the banking sector has increased the exposure of financial institutions and their customers to cyber risk. Pablo Hernández de Cos calls for collaboration among financial institutions,...

There is considerable disagreement about the growth potential of AI. Francesco Filippucci, Peter Gal, Cecilia Jona-Lasinio, Alvaro Leandro and Giuseppe Nicoletti argue that the promises and perils of AI-related...

The operational resilience of Financial Market Infrastructures is crucial to UK financial stability. Sasha Mills outlines some key expectations for FMIs to meet the Bank of England’s policy in this ar...

Cecilia Skingsley proposes a framework to help central bankers in embracing innovation and at the same time solve some of the challenges confronting the central banking and regulatory communities

Bank regulators are planning to introduce a package of liquidity regulations later this year in response to last year’s bank failures. Michelle Bowman discusses potential changes to improve liquidity for...

Trust is essential for the success of public policies. Agustín Carstens argues that policymakers' success in dealing with recent crises was due to the trust they had built over the years, which allowed...

AI will both be of considerable help to the financial authorities and bring new challenges. Jon Danielsson and Andreas Uthemann discuss how the authorities might want to approach AI, where it can help,...

Michelle Bowman discusses the role of tailoring in the regulation of banks, and how it allows the safety and soundness of the banking system and US financial stability

Financial markets have inherent instability. Daniel Dăianu considers the role of AI but finds it hard to imagine a complete replacement of human judgment in monetary policy

The ECB’s Governing Council has decided to proceed with the ‘preparation phase’. Ulrich Bindseil, Piero Cipollone and Jürgen Schaaf focus on the debate around the impact of a digital euro on bank fund...

The Federal Reserve’s bank supervisory function is integral to a safe and sound banking system. Michael Barr argues that the Fed’s supervision must change and adapt with it, just as the banking system...

Andrew Bailey gives an overview on the state of the banking sector, focusing on the future issues that are important for banks themselves and for broader monetary and financial stability

Financial risk models are critical for the operation of financial institutions and financial regulations. Jon Danielsson argues that measuring systemic financial risk needs to acknowledge the changed behaviour...

Bank management and directors face significant challenges in preparing for an unpredictable future. Michelle Bowman suggests a different way of thinking about the long-term challenges and opportunities...

The EU has to manage the climate and digital transitions and achieve greater economic resilience. Maria Demertzis, David Pinkus and Nina Ruer discuss the potential EU approach to funding strategic obj...

As AI makes inroads into the financial system it exacerbates existing channels of instability and creates new ones. Jon Danielsson and Andreas Uthemann identify several such channels

Michelle Bowman considers the proposed Basel III reforms, and sees a path forward if the proposal was revised to address its two greatest shortcomings: over-calibration and a lack of regulatory tailor...

The US has dropped its support for unhindered international digital trade. Patrick Leblond argues that it now makes an e-commerce agreement at the WTO more likely

Michelle Bowman urges a return to regulatory tailoring to avoid the impulse to crank regulatory dials to their highest level for all firms

Cristina Caffarra argues it would be bizarre and unusual for antitrust enforcement to regard itself as an island of stillness, and calls for a more open approach

The last five years has seen policymakers struggle to deal with overlapping emergencies. Cristina Caffarra discusses the changing role of antitrust

International governance has brough indisputable benefits, but mistrust has grown. Christine Lagarde calls for policymakers to focus on citizens’ priorities whilst being courageous and accountable

The EUs ambitious AI Act demonstrates its lead. Martin Kretschmer, Tobias Kretschmer, Alexander Peukert and Christian Peukert argue that the EU should focus on data quality and liability rules to set the...

Banri Ito and Eiichi Tomiura use a survey of Japanese firms in 2019 and 2021 to examine the dynamics of corporate activities related to crossborder data flows

Age Bakker and Roel Beetsma provide concrete suggestions for the financial design and enforcement of an EU-wide investment fund

The use of artificial intelligence is accelerating. Jon Danielsson argues that although AI will bring considerable benefits, it also raises new challenges and can even destabilise the financial system

Jon Cunliffe recalls Facebook’s announcement in 2019 that it was launching a digital currency, and discusses the three areas where this galvanised more urgent action by authorities

Agustín Carstens discusses the lessons from the bank failures that occurred in March 2023, and argues that robust and proactive supervision is essential

Elisabeth Stheeman discusses how the threat of cyber-attacks has become an increasingly important consideration for maintaining financial stability in the UK, describing how the FPC is working to improve...

Brexit poses unique challenges for policymakers in the EU. Thorsten Beck and Christy Ann Petit assess the EU’s equivalence policy and present options for deepening regulatory cooperation

Sam Woods discusses the 2023 banking failures, the lessons learnt and how the regulatory framework is doing its job

The recent macroeconomic experience has presented both monetary policy and financial stability challenges for central banks. Michelle Bowman discusses how central banks can these vulnerabilities

The European Commission has proposed fiscal governance reform. Lucio Pench offers proposals to enhance institutional self-commitment to implementation, with reputational consequences for non-implement...

The EU’s Stability and Growth Pact has been struggling with enforcement since inception. Georg Kirchsteiger and Martin Larch consider the enforcement dilemma of EU fiscal rules

Agustín Carstens says with the global economy at a critical juncture, it is a time for resolute and realistic policy

The financial system remains fragile. Stephen Cecchetti and Kermit Schoenholtz recommend strengthening capital and liquidity requirements, modifying accounting standards, and improving stress tests

Cyril Monnet and Dirk Niepelt argue that in protecting the current banking model the ECB could be sacrificing the digital euro on the altar of banking as we know it

There are efficiency and cost benefits in using AI. Jon Danielsson discusses what tasks can safely be outsourced to AI and what needs to stay in the hands of human decision makers

Digital trade is increasing rapidly. Martina Ferracane, Bernard Hoekman, Erik van der Marel and Filippo Santi consider how the EUs approach to data protection impacts digital trade

Streamlining of the company listing process is welcome, but more fundamental reform is needed to revive the EU’s flagging equity markets, Alexander Lehmann discusses

Henk Jan Reinders, Dirk Schoenmaker and Mathijs Van Dijk review current climate risk stress test methods and identify new approaches

The regulatory framework is evolving. Michelle Bowman urges regulators to focus on novel banking activities, including banking as a service and digital assets, to prevent a regulatory void

Generative AI could change our lives. Gita Gopinath considers artificial intelligence through the ideas of Adam Smith

There are many who ask for radical reforms of regulation and deposit insurance. Fernando Restoy argues that strengthening supervision should be considered first

Giorgio Barba Navaretti, Giacomo Calzolari and Alberto Pozzolo argue that the scope and the aims of open banking, although potentially ground-breaking, may thus be overstated

Francesco Papadia says regaining price stability is difficult but doable, but the bigger problem facing central banks is economic uncertainty, not managing the trilemma

Cryptoassets and markets are a relatively recent innovation in finance. Claudia Buch says there is a need to monitor and take preventive action against risks in these markets

Anat Admati, Martin Hellwig and Richard Portes argue that US authorities should acknowledge the evident banking crisis and suggests reforms to address the underlying solvency problems

The Commission’s Crisis Management and Deposit Insurance proposal has the potential to improve bank resolution in the European Union, Mathias Dewatripont, Peter Praet and André Sapir suggest

In light of the recent bank failures Michelle Bowman discusses supervision, regulation, bank management culture, and technology, and how each of these changes the dynamics of building a stronger and more...

Berg et al argue that it would be welfare-enhancing if policy changes were to follow a predictable longer-term path, and suggest a role for financial regulation in the transition

Claudia Buch, Linda Goldberg and Björn Imbierowicz discuss new evidence from the International Banking Research Network on how trade uncertainty can be amplified through the supply of credit

Aymo Brunetti argues that big banks must become globally resolvable, or significantly ‘smaller’

The US and Swiss bank collapses show the importance of strong capital and liquidity positions and should signal to the EU the benefits of closer adherence to Basel III, Nicolas Véron believes

Fabio Panetta argues that making a digital euro both available to everyone and easy to use requires a good design and an adequate regulatory framework

Jon Cunliffe looks at four areas where the tokenisation of money is now being explored, examining the BoE’s work to ensure these new forms of money are robust and uniform

China’s leadership has made financial risk a core priority. Martin Chorzempa and Nicolas Véron discuss the regulatory reforms

SVB and Credit Suisse have exposed regulation failures. Jon Danielsson and Charles Goodhart argue the best way forward would be to focus on shock absorption and moral hazard, not the current approach of...

The world’s international economic institutions have helped reduce conflict and support growth. Tim Sargent, Paul Samson and Hector Torres discuss why we need to fix our international economic organiz...

Mathias Dewatripont, Peter Praet and André Sapir consider the regulation lessons to be learned from the Silicon Valley Bank collapse