Unanswered questions about global finance

While the FSB appears sanguine that the exposure of commercial banks to shadow banking has been contained, and the latter is now being monitored, it remains outside the regulatory umbrella

banking model

Illustration by Ajay Mohanty

Alok Sheel
With the 14th G20 Summit scheduled in Osaka later this month, it is time to take stock of what the G20 itself saw as one of the ultimate causes of the 2008 Global Financial Crisis (GFC), namely the failure of financial regulation. 
Financial regulatory reform, like most G20 initiatives, was attempted through advisories to multilateral institutions, such as the Basel Committee on Bank Supervision (BCBS) for commercial banks, and the International Organisation of Securities Commissions (IOSCO) for non-banks and shadow banking. Monitoring of these reforms is being done by the G20 through the restructured Financial Stability Board (FSB). These reforms were supplemented by national initiatives, such as the Dodd Frank Act in the US, the Vickers Commission in the
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

First Published: Jun 04 2019 | 01:51 AM IST

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