The Shape of Financial Regulation
In almost every country where the last financial crisis cut deep, there has been a major reorganization of the institutions of regulation. Perhaps the most dramatic changes so far have occurred in the UK. The UK’s unitary, separate Financial Services Authority (FSA), created as recently as 2001, was abolished in 2013. It was replaced with a new regulatory structure consisting of the Financial Policy Committee and the Prudential Regulation Authority at the Bank of England as well as a separate agency, the Financial Conduct Authority. Similarly dramatic changes are envisaged in the US, though the new arrangement is still evolving. In Europe, as I write, significant changes are being envisaged for a new European Banking Union.