Debt Expansion as “Relief and Rescue” at the Time of the Covid-19 Pandemic: Insights from the Legal Theory of Finance

Chiu, Iris H‐Y; Kokkinis, Andreas; Miglionico, Andrea

doi:10.2979/indjglolegstu.28.1.0029

Cited by 1 publication

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References 20 publications

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“…162 On this view, it seems unwarranted to draw a line to allow certain constituents (such as sovereigns and large financial institutions) to benefit from legal elasticity and to disallow other segments of society from invoking that possibility. 163 Joint supervision also allows regulators to yield important ground-level information that connects to policy-making if issues of scale are discerned. Such a role does not overstep regulators' mandates but maximises the coordinative ethos that regulators already maintain to ensure that financial regulation objectives as a whole are met.…”

Section: Tailored Regulatory Supervision Beyond Tailored Debt Arrangements: a Roadmap For Scrutinising Financial Welfare Outcomesmentioning

confidence: 99%

Addressing the challenges of post-pandemic debt management in the consumer and SME sectors: a proposal for the roles of UK financial regulators

2021

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Regulatory actions for short-term debt-relief during the Covid-19 pandemic are facilitating a significant level of indebtedness. We argue that regulators, in leaving the banking sector to manage small business and consumer debtors in ‘tailored arrangements’, risk allowing financial welfare goals to be unmet. Financial welfare goals are important to the Financial Conduct Authority’s (FCA) consumer protection objective and give substantive meaning to the long-term financial stability objective of the Prudential Regulation Authority (PRA). Although the struggles with debt on the part of small and medium-sized businesses and households are not capable of complete resolution by financial regulators, who are constrained by their statutory mandates, we argue that the PRA and FCA should establish a coordinated supervisory framework of ‘tailored supervision’ for banks’ ‘tailored arrangements’ with their debtors. This proposal allows both regulators to address to an extent the needs of unsophisticated post-pandemic debtors and meet their objectives in a joined-up and holistic manner.

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Section: Tailored Regulatory Supervision Beyond Tailored Debt Arrangements: a Roadmap For Scrutinising Financial Welfare Outcomesmentioning

confidence: 99%

Addressing the challenges of post-pandemic debt management in the consumer and SME sectors: a proposal for the roles of UK financial regulators

2021

View full text Add to dashboard Cite

show abstract

Debt Expansion as “Relief and Rescue” at the Time of the Covid-19 Pandemic: Insights from the Legal Theory of Finance

Cited by 1 publication

References 20 publications

Addressing the challenges of post-pandemic debt management in the consumer and SME sectors: a proposal for the roles of UK financial regulators

Addressing the challenges of post-pandemic debt management in the consumer and SME sectors: a proposal for the roles of UK financial regulators

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