The Proposed Regulatory System for Financial Services

1. IntroductionIn February 2009 the de Larosiere Group created a number of recommendations with the aim of strengthening the European pecuniary system to prevent another(prenominal)(prenominal) pecuniary crisis in the hereafter. On account of the report the European Commission has proposed a parvenue agenda of financial recommendations that include rough changes and about reproof of the constitution?s recommendations. In this paper I am aiming at evaluating the Commission?s proposals that are ground on the recommendations of the de Larosiere Report in stray to find step up whether they address the relevant problems and whether they are more competent of preventing another financial crisis. 2. Evaluation of the Commission?s proposal stupid on the de Larosiere ReportThe de Larosiere Report analyses the main causes of the financial crisis and addresses common chord correction issues that should be reformed in order to avoid a similar predicament in the future. According to the Larosiere Report the winder factors that amplified the crisis are loose monetary policy, lack of transparency regarding the banking systems, failures in the ratings of structured products by credit rating agencies, weak disturbance of firms, lack of regulating of macro-prudential risks, lack of supervision of firms and lack of coordination of world(prenominal) financial institutions.

In order to fixity the above weaknesses, the Report recommends three major recommendations:oEU regulatory repairosupervisory repairoglobal repairAlthough the Commission welcomes the Report, it only addresses the recommended supervisory repair related issues. However,! it is outstanding to mention that the de Larosiere Report addresses some truly important regulatory and global issues that could be important to debate with in order to avoid another financial crisis. 2.1 global repair:The Report considers some crucial changes on outside(a) train in order to avoid a possible future crisis again. The main recommendation here is an international financial regulation carried out by Financial perceptual constancy assembly that... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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