The U.S. financial system is inextricably connected with financial systems around the world. How have non-U.S. regulators approached this question of regulating financial activities in an interconnected world?
Traditional microprudential regulation is firm-based, by definition. But macroprudential regulation is not necessarily activities-based, nor is activities-based regulation necessarily macroprudential.
How should an activities-based approach address potential risks posed by financial activities that take place outside of regulated financial institutions?
During the 2007-09 financial crisis, regulators learned they did not always have the information or authority they needed to supervise the financial sector.
What is the role of firm-based financial stability regulation as we focus on an activities-based approach to financial stability risk monitoring and regulation?
To identify potential risks to our interconnected financial system, regulators need access to extensive financial data on a wide variety of firms and markets.
