Rethinking regulation of the modern financial system

Rules need to address uncertainty in addition to risks, and should not be too complex

The international financial system has shown a tendency towards increasing complexity during the last few decades. Economists have defined this complexity in terms of greater variety of types of financial intermediaries and instruments, longer intermediation chains, and greater interconnectedness among sectors. Overall, this complexity makes it difficult to trace and monitor each institution’s network of direct and indirect linkages.

In response to these developments, financial regulation has

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account