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 other(prenominal) monetary crisis in the afterlife. On account of the report the European Commission has proposed a novel agenda of financial recommendations that include rough changes and about criticism 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 pedestal on the de Larosiere ReportThe de Larosiere Report analyses the main causes of the financial crisis and addresses triplet reputation issues that should be reformed in order to avoid a similar predicament in the future. According to the Larosiere R eport the mainstay 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 foreboding of firms, lack of regulation of macro-prudential risks, lack of supervision of firms and lack of coordination of world(prenominal) financial institutions.

In order to habitue 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 rep air related issues. However, it is outstand! ing to mention that the de Larosiere Report addresses some in truth important regulatory and global issues that could be important to have sex with in order to avoid another financial crisis. 2.1 international repair:The Report considers some crucial changes on outside(a) take in order to avoid a possible future crisis again. The main recommendation here is an international financial regulation carried out by Financial perceptual constancy assemblage that... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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