Chapter 19

Regulating Finance

In This Chapter

arrow Understanding what regulators regulate

arrow Maintaining a regulatory relationship

arrow Basing decisions on the Basel Accords

arrow Passing stress tests

arrow Challenging regulations as needed

At my last count, national governments had established 206 major financial regulatory organisations, from the Afghanistan Bank to the Zambia Securities and Exchange Commission. No doubt others have sprung up by the time you read this book. This total does not count supranational entities like the Bank for International Settlements, subnational entities like the New York State Insurance Commission, quasi-governmental organisations like the UK Panel on Takeovers and Mergers, self-regulatory organisations like the US Financial Industry Regulatory Authority and private regulatory groups like the UK British Bankers Association.

I can’t cover everything a financial organisation has to do to satisfy all of these regulators because

  • I only know a tiny fraction of that answer.

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