Redesigning the contours of the future financial system /

Redesigning the contours of the future financial system /

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Bibliographic Details
Author / Creator:Kodres, Laura E., author.
Imprint:[Washington, D.C.] : International Monetary Fund, 2010.
Description:1 online resource (19 pages)
Language:English
Series:IMF staff position note ; SPN/10/10
IMF staff position note ; SPN/10/10.
Subject:
International finance.
Global Financial Crisis, 2008-2009.
Banks and banking.
Banks and banking -- State supervision.
Financial institutions.
Financial institutions -- State supervision.
Nonbank financial institutions.
Nonbank financial institutions -- State supervision.
Banks and banking.
Banks and banking -- State supervision.
Financial institutions.
Financial institutions -- State supervision.
International finance.
Nonbank financial institutions.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12498267
Hidden Bibliographic Details
Other authors / contributors:Narain, Aditya, author.
International Monetary Fund.
ISBN:1463940947
9781463940942
1463973748
9781463973742
1462388884
9781462388882
Notes:Title from PDF title page (publisher's Web site, viewed Sept. 17, 2010).
"August 16, 2010."
Includes bibliographical references.
Summary:This paper explores the responses of the private and public sector to the crisis and some of the probable outcomes. Aside from improved supervision of individual institutions, greater emphasis needs to be put on financial regulations that reflect the systemic nature of financial risks and the role that macroeconomic policies play. Global consistency of regulation and financial sector taxation will be essential to mitigate systemic risks, to avoid unintended distortions, and to help ensure a level playing field. This note suggests the key aspects of the future contours will likely be: 1) Banks are expected to return to their more traditional function as stricter regulation will limit the risks and activities that banks can undertake. ; 2) The nonbanking sector will likely have a greater competitive advantage--both in supplying credit and providing investors with nonbank services--and will thus grow. ; 3) The perimeter of regulation is bound to expand to take into account the risks in the nonbank sector. ; 4) Market infrastructure will be reinforced to protect investors and as a consequence will need to provide needed simplicity and transparency to make risks clearer and the financial system safer. ; 5) The global financial system is likely to be smaller, and less levered, than in the recent past, and could well be less innovative and dynamic, at least for a while.

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