The G20 financial regulatory reform and the next financial crisis

Although the G20’s reform of the architecture of financial regulation is comprehensive in design, the main focus of its implementation has been on strengthening the regulation of global systemically important banks (G-SIBs). More intensive bank regulation will doubtless make individual G-SIBs less vulnerable to idiosyncratic shocks. But will it make the financial system as a whole less prone to endogenous risk and crisis?

The ongoing reform of bank regulation is unleashing major structural changes throughout the global financial system. This has implications for the types of system-wide stresses that could cause the next financial crisis, the emerging vulnerabilities that regulators need to watch closely, and the contagion dynamics of the system when a crisis occurs. This seminar will discuss these issues and examine how financial sector risk managers, regulators, and policy makers might address the resulting risks to financial system stability.