Have Regulations for Finance Been Pushed Too Far?

According to this white paper from KPMG the regulations that were implemented due to the financial crisis in 2008 may have been pushed too far and may even have a negative impact on economic growth. Instead the industry needs better regulations that are more accustomed to the needs of the broader economy.
 
The report states that by acknowledging the need for better regulations instead of more, economic growth should be possible. Here are some of the regulatory issues and areas that need to be addressed:
 
  • Financial institutions should have a strong incentive to behave more responsibly to both regain trust and to enable regulators to take pressure off
  • Investors and end-users needs to be more realistic about what both financial institutions and regulators can achieve, but also remain alert of impact of the cost and availability due to regulations
  • Regulators and politicians must consider the whole impact of a reform or regulation before putting it in to action. They need to realize that banking is a risk business, but also understand that finance is a contributor of economic growth

 

Reprinted by permission. For additional news and information, please access KPMG’s global Web site in the Internet at www.kpmg.com

 

 

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