Trends and theory in financial regulation and regulatory design after the global financial crisis

Financial stability has taken on added significance as a regulatory goal since the global financial crisis. This has prompted a series of regulatory reforms across the world, with emphasis placed on improving macroprudential regulation. The reforms have been wide-ranging but have generally been achieved through the creation of new regulators dedicated to monitoring financial stability, the provision of powers that advance the achievement of financial stability, and the use of governance mechanisms to promote a more active approach to financial regulation. This chapter considers some of these regulatory reforms in key jurisdictions with an emphasis on outlining key trends and theory in financial regulation since the crisis. These trends are relevant in Asia as a number of jurisdictions are considering regulatory reform options in this area.