Topic
Have the banking regulations enacted since the Global Financial Crisis gone too far?
Instructions
Words: 1900
References: 15 minimum (Harvard).
Essay Title:
Have the banking regulations enacted since the Global Financial Crisis gone too far?
Requirements:
1. This is to be written in a journalistic style similar to a lead article from the Financial
Times or the Economist.
2. You should write for an informed but not expert audience (e.g. expand acronyms
and try to explain technical concepts in basic terms).
3. Think about the purpose of regulation and the trade-off between preventing future
financial crises at the expense of reduced financial innovation and credit expansion.
4. You should also draw on academic concepts and findings to provide evidence to
support your argument.
For some recent commentary on this issue, see:
1. Jonathan Hill, former EU Commissioner for financial services:
(http://europa.eu/rapid/press-release_SPEECH-16-2503_en.htm)
2. Mervyn King, former governor of the Bank of England:
(https://www.bloomberg.com/news/videos/2016-03-21/mervyn-king-postcrisis-
regulation-has-gone-too-far)
3. Mark Carney, current governor of the Bank of England:
(http://www.marketwatch.com/story/boes-carney-bank-reforms-may-havegone-
too-far-2015-11-11)
4. Robert Fleming, Investor Advocate at the Securities and Exchanges Commission:
(https://www.sec.gov/news/speech/fleming-speech-keynote-address-111616.html)
5. Andreas Dombret, member of the Executive Board of the Bundesbank:
(https://www.bundesbank.de/Redaktion/EN/Reden/2015/2015_11_24_dombret
.html)
6. Barry Ritholtz (https://www.bloomberg.com/view/articles/2016-08-26/maybewe-
clamped-down-too-hard-on-finance)
7. For a compendium of recent comments and news stories, see:
(http://www.euromoney.com/Article/3097378/Financial-regulation-
specialfocus.html)
Answer preview
The impact of the Global Financial Crisis was not only influencing in the economic
recession, but also the financial sector. The banking sector has implemented major reforms
following the Global Financial Crisis. Different legislations have been formulated to secure
the financial system and make it more stable. While the existing reforms may not have
completely averted the risk of financial crisis, banks have adopted measures to ensure the
sustainability of the sector. For example, banks have significantly increased the holding
capital to ensure taxpayers’ money is not used again to bail the sector. Besides, the risks of
reward and remuneration are harmonized to ensure a correct balance.
Word count: 2364