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financial regulation

Wayward Bankers: An Epic Accountability Challenge

Sina Odugbemi's picture

The global community faces an epic governance and accountability challenge: the big banks that we all use either directly or indirectly are out of control and nobody seems to know what to do about them. As we mark the fifth anniversary of the global financial crisis this month, it appears as if every new week brings news of a fresh banking scandal. The recent list:

Of One Mind? Closer Coordination of Monetary Policy and Financial Regulation

The Central Bank in Dublin: A responsible conversation needs to be reignited between prudential regulators and monetary policy authorities. (Credit: Infomatique, Flickr Creative Commons)

Recent debate over the optimal form of regulatory architecture for increasingly integrated and interconnected financial systems has largely focused on redefining the balance between regulators and the universe of financial institutions they regulate. This piece identifies a less “fashionable” – though no less significant – contributor to the global financial crisis, that is, the dysfunctional relationship which often existed between financial regulators and monetary policy authorities. The fact that this dysfunction has not been discussed in depth suggests that its negative consequences are no less likely to re-emerge in the future.