lundi 30 mars 2015
Fed Fischer: Nonbank Financial Intermediation, Financial Stability, and the Road Forward
Posted on 16:51 by nice news
It is an honor to speak at the Federal Reserve Bank of Atlanta's 20th Financial Markets Conference, and I am grateful to President Lockhart and the organizers for inviting me to do so.1 This evening I would like to take stock of progress on financial reforms in the nonbank financial sector and highlight some principles for approaching prudential regulation of this sector to further strengthen financial stability.
The nonbank sector includes firms with diverse business models and practices, many of which differ greatly from those of banks. Even so, nonbank firms and activities can pose the same key vulnerabilities as banks, including high leverage, excessive maturity transformation, and complexity, all of which can lead to financial instability. The reforms undertaken to date reflect both the differences and similarities between the nonbank and bank sectors.
While there has been progress on the financial reform front, we should not be complacent about the stability of the financial system. Regulation often creates incentives for activity to move outside the regulatory perimeter, and market participants respond to incentives. Thus we should expect that further reforms will certainly be needed down the road.
The nonbank sector includes firms with diverse business models and practices, many of which differ greatly from those of banks. Even so, nonbank firms and activities can pose the same key vulnerabilities as banks, including high leverage, excessive maturity transformation, and complexity, all of which can lead to financial instability. The reforms undertaken to date reflect both the differences and similarities between the nonbank and bank sectors.
While there has been progress on the financial reform front, we should not be complacent about the stability of the financial system. Regulation often creates incentives for activity to move outside the regulatory perimeter, and market participants respond to incentives. Thus we should expect that further reforms will certainly be needed down the road.
Fed Fischer: Nonbank Financial Intermediation, Financial Stability, and the Road Forward
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire