How should an activities-based approach address potential risks posed by financial activities that take place outside of regulated financial institutions?
Traditional microprudential regulation is firm-based, by definition. But macroprudential regulation is not necessarily activities-based, nor is activities-based regulation necessarily macroprudential.
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?
To identify potential risks to our interconnected financial system, regulators need access to extensive financial data on a wide variety of firms and markets.
