Promulgating pro-cyclicality
Collaboration between financial supervisors has never been higher. But as the regulation of banks and insurance companies becomes increasingly homogenised, fears are growing about the possibility that the new rules will increase the severity of a global systemic shock. By Christopher Jeffery
It's a sign of a benign market environment when respondents to a survey called Banking Banana Skins 2006, released by the Centre for the Study of Financial Innovation and PricewaterhouseCoopers in June, vote 'too much regulation' as the biggest threat to the financial health of banks for the second year in a row. These respondents from more than 60 countries believe the regulatory burden is too
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