Security and financial regulation - N° 60

Collectif

Économie et entreprises Éducation et guide

Publié par AEF, le 06 juillet 2001

254 pages

Résumé

The reasons that caused us to choose the theme of security and financial regulation for this edition of the Revue d'économie financière hinge around an awareness of changes in financial activities leading us to raise in fresh terms the question of the stability of the system and the means of regulating it. 1. What is generally called financial globalization has not simply a geographic dimension. It is also a powerful feature in the removal of legal and regulatory borders between the various players in the financial sphere. Multiple business financial conglomerates are developing, intermediaries are performing new functions and non financial entities are starting over-the-counter activities or marketing savings instruments. It is not surprising that questions arise as to the forms that the regulation of these entities should take, and on the shape and nature of the institutions responsible. 2. While the principle of public authorities exercising regulatory functions independently of executive power such as is now seeing general application around the world in the industry, the Australian or British reforms and the first conclusions that they allow to be drawn, raise the question of the optimal organization of regulatory authorities. Must a single prudential body be responsible for regulating intermediaries and the market ? What place should the industry's own authorities be accorded and what remits should the public regulator delegate to them ? 3. The last two decades have seen not just a rise in financial risks but a change in their nature too. In this regard, prudential regulators have had reason to question their methods, seeking the best instruments for holding intermediaries to account. They have had to encourage intermediaries to monitor risk better. Rather than directly assuming risk management itself, prudential supervision aims to ensure it is done. 4. Internationally, cooperation between national regulators and between broad categories of regulators has had to intensify and find new forms or new mediums born of the recent crises (Financial Stability Forum). So after the single currency was launched, Europe debated the organization that would ensure, as regards regulation, the best unification of its capital market (Committee of experts chaired by Alexandre Lamfalussy) and the effectiveness of the surveillance of a banking sector that is fast being restructured. 5. Lastly, new players are appearing or seeing their influence increase (rating agencies, hedge-funds). Ensuring the best security of the financial system while promoting regulation that best supports its development raises a series of questions that this number tries to answer. Regulators have to meet challenges in terms of legitimacy, method or structure. Contributions to this special number are organized around five broad themes : - changes in the principles of prudential control - the legal dimension of prudential control - the organization of prudential supervision - supervisory problems posed by particular financial players - the question of deposit insurance