Chatham House: Independent thinking on international affairs

Financial Regulation and the Real Economy

Balancing growth and stability
19 March 2012

What will be the impact of proposed financial regulation on banks’ roles in the real economy?

Post-financial crisis, policy-makers in the US, Europe and the UK are considering and writing regulation in an attempt to establish financial stability and to protect taxpayers from bearing the cost of future systemic failure.

But in the context of dramatically deteriorating economies and turmoil in financial markets on both sides of the Atlantic, should regulators soften their approach?  Senior policymakers, business leaders, and expert commentators will discuss vital issues including:

  • Who should write the rules?
  • Whether proposed financial regulation will restore or stifle economic growth
  • The extent to which reforms will invite regulatory and sectoral arbitrage
  • How national policymakers will tackle tensions between international regulation and national self-interest
  • Whether the Dodd-Frank Act and the UK’s Independent Commission on Banking’s recommendations will survive political realities
  • Progress on cross-border resolution.