Approaches to financial regulation in view of the crisis

Abstract

Purpose – Financial crises pose a challenge to the legal systems of the concerned countries and international organizations. The current crisis has exposed significant failures of regulation and supervision, making the Financial Market Law a key topic on the political agenda. Thus, great changes and challenges are ahead of us. These were the focus of an interdisciplinary and comparative conference held at the University of Marburg. The paper deals with the individual presentations and carries out an overall analysis. Design/methodology/approach – The paper covers the most important issues in financial regulation. Findings – An extensive regulation is confronted with several obstacles; suitable approach could be the co-regulation; desirable aim is the instauration of the mechanism of capital markets. Those who gain the benefits in case of success should also bear the losses in case of failure instead of being rescued at taxpayers’ expense. Originality/value – The difficulties arising from extensive regulation suggest a more liberal approach to financial regulation.

Financial regulations and risk in the context of the global recession

“…Deregulation was perceived to mirror an increasing sense of security about risks, which as the increase of adequate markets, was another reason for regulatory failure. Stöhr (2015) made a declaration that as a result of decades without experiencing an extensive crisis, it is far too easy to dream that they have built a structure that is impenetrable against risks. Regulators must have forgotten that almost all of the regulation was to prevent the increase of speculative bubbles or signs of overconfidence and overjoy.…”