The Nature of Financial Regulation and its Rationales
9 Pages Posted: 20 Oct 2020
Date Written: January 5, 2017
This introductory paper explores the general nature of financial regulation as a set of behavioral rules. Public authorities impose these rules on market participants. The aim is to influence market participants’ behavior in order to achieve certain regulatory goals. The financial crisis has changed our perception of how regulation should be designed in order to achieve these goals. The advent of FinTech challenges our perception again.
Keywords: Regulation, Market Failure, Systemic Risk, Financial Crisis, FinTech
JEL Classification: K22; G01; G18
Suggested Citation: Suggested Citation