The chairman of the Financial Services Authority, Lord Turner, yesterday delivered the Economist's inaugural city lecture. The title of the lecture was "The Financial Crisis and the Future of Financial Regulation". Lord Turner outlined three regulatory proposals which will bring about major changes:- Adopting new approaches to capital adequacy, entailing more capital held against risky trading strategies and counter-cyclical capital requirements to build up adequate buffers during good economic times, which can be drawn on in bad.
- A new liquidity regime focused not just on individual firms’ liquidity but also on market-wide risk.
- Ensuring that financial activity is regulated according to its economic substance not its legal form.
Lord Turner was interviewed this morning on BBC Radio 4's Today programme: the interview is available here.
No comments:
Post a Comment