The Global Financial Development Report 2019/2020 provides new data and evidence on the regulatory remedies adopted to prevent future financial instability and sheds light on ongoing policy debates. The analysis mostly focuses on two key areas: the progress and impact of the reforms on market discipline and bank capital regulation. The report argues that effective regulation and supervision need to harness the power of market discipline to curb excessive risk-taking by private parties. Bank regulations need to be compatible with incentives, but designing and enforcing such regulations are complex tasks. Less complex regulations may mean more effective enforcement by supervisors and better monitoring by stakeholders. Globalization and technological change are important trends that make it even more challenging to provide effective oversight of banks.
Watch and join us at Live Chat: Seminar will be live-streamed, allowing for online audience participation (only available during the seminar)