Regulatory Strategies
No Thumbnail Available
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Description
Over the years, there has been a shift from a wide command-and-control style of supervision whereby
the regulator imposes detailed rules with which regulators supervise to one which consists of risk
based regulatory strategies. ‘Enforced Self Regulation’, a regulatory strategy whereby negotiation
takes places between the State and the individual firms, lies between the command-and-control style of
supervision and meta risk regulation in that firms are still required to regulate but according to their
own models. It differs from the traditional command-and-control style of bank supervision in that
firms and not the regulator, are required to regulate. It is similar to meta-risk regulation in that the
individual firm’s model is taken into consideration in regulating such firms.
Whilst the merits and disadvantages of the individual regulatory strategies are considered, this paper
concludes that all regulatory strategies should take into consideration the importance of management
responsibilities – both on individual and corporate levels.
Keywords
HG Finance