Global Financial Regulation - 9780745643502

As international financial markets have become more complex, so has the regulatory system which oversees them. The Basel Committee is just one of a plethora of international bodies and groupings which now set standards for financial activity around the world,in the interests of protecting savers and investors and maintaining financial stability. These groupings, and their decisions, have a major impact on markets in developed and developing countries, and on competition between financial firms. Yet their workings are shrouded in mystery, and their legitimacy is uncertain.

Here, for the first time, two men who have worked within the system describe its origins and development in clear and accessible terms. Howard Davies was the first Chairman of the UK’s Financial Services Authority and the single regulator for the whole of Britain’s financial sector. David Green was Head of International Policy at the FSA, after spending thirty years in the Bank of England, and has been closely associated with the development of the current European regulatory arrangements.

This guide to the international system will be invaluable for regulators, financial market practitioners and for students of the global financial system, wherever they are located. The book identifies weaknesses in a system faced with new types of institutions such as hedge funds and private equity, as well as the growth in importance of major developing countries, who have been excluded so far from the key decision-making fora. It will be essential reading for all those interested in the development of financial markets and the way they are regulated.