Introduction to 'Basel III and Beyond'
The Big Financial Crisis
The Policy Response: From the G20 Requests to the FSB Roadmap; Working Towards the Proposals of the Basel Committee
The New Definition of Regulatory Capital
A New Framework for the Trading Book
Counterparty Credit Risk and Other Risk-Coverage Measures
Tools for Mitigating the Procyclicality of Financial Regulation
The Regulatory Leverage Ratio
The New Framework for Liquidity Risk
The Discipline of Credit Rating Agencies
Systemically Important Banks
Regulating Remuneration Schemes in Banking
Crisis Management and Resolution
The Impact of the New Regulatory Framework
A Brazilian Perspective on Basel III
A New Institutional Framework for Financial Regulation and Supervision
Structural Regulation Redux: The Volcker Rule
The Changing Uses of Contingent Capital under the Basel III Framework
This final chapter deals with the institutional framework for financial regulation and the conduct and supervision at the global, European and national levels. The financial crisis had many causes (as detailed in Chapter 1) and provided the basis for a sweeping regulatory reform (Section 15.2). The new rules can however be effective only if accompanied by a new institutional architecture that is geared towards fulfilling the regulatory objectives, scope and approaches.
Accordingly, the chapter describes and comments upon the bodies, structures and processes that are emerging for the implementation of the regulatory reform with regard to both micro- and macroprudential supervision (Sections 15.3 and 15.4).
At the global level, the focus is on the roles of the FSB and the IMF in the formulation, implementation and enforcement of regulatory policies under the guidance of the G20, as well as in the monitoring of the global financial system.
The chapter then analyses at length the established European System of Financial Supervision (see Table 15.2), which comprises three