Regulatory Complexity and the Quest for Robust Regulation

Abstract

comprehensive understanding of correlations and interlinkages, as well as an understanding of macroeconomic feedback mechanisms. 6.Information availability: regulatory information should allow for prompt identification of contagion channels and pockets of vulnerability. Timely information enables policies to be implemented that react effectively to new developments, either by recalibrating or activating existing regulatory tools or by activating crisis management tools. 7.Non-regulatory discipline: the presence of regulatory discipline should not entail the removal of non-regulatory discipline. On the contrary, the discipline that derives from market players, effective governance structures and the prevalence of high ethical and personal responsibility standards in the management of financial institutions is complementary to financial regulation and may reduce its need to rely on complex rules.Reports of the Advisory Scientific Committee No 8 / June 2019 Introduction 5Arguably, these institutions contribute to harmonising regulatory and supervisory policies and practices in the EU, thus reducing the complexity associated with the heterogeneity in country legislations and practices. In practice, however, some of the new institutions have not wholly replaced the old ones, creating a more complex institutional landscape.

Policy making in the financial industry: A framework for regulatory impact analysis using textual analysis

“…However, while RegTech is quite advanced in supporting the compliance of firms and the respective investigations by supervisors, literature comes short concerning the supply of appropriate IT systems and methodologies for regulators, who need to assess and review whether their regulatory actions actually fulfill the desired goals. While there is a call for increasing the efforts regarding the evaluation of regulations' effectiveness by conducting RIA (Gai et al 2019), regulators become increasingly aware that they need appropriate process guidelines and IT-solutions to automate the assessment of the masses of data provided in response to the reporting and disclosure requirements of firms (Arner et al 2016(Arner et al , 2017. Thereby, IT and RegTech may unleash significant benefits for regulators to improve regulatory intelligence and to achieve their goal of facilitating a safe and resilient economic system based on RIA and evidence-based policy making.…”

Robusztussá tehető-e a válság utáni pénzügyi szabályozás a nemzeti implementáció éveiben?

“…7 Akár a divergenciával számoló felkészülésre, akár a folytatódó konzervatív szabályegységesítésre kerül a jövőben a hangsúlyt, mindkét esetben a pénzügyi szabályozás komplexitásából kell kiindulni. Hogy megértsük, miben is áll tulajdonképpen a pénzügyi szabályozás komplexitása és hogyan függ össze a válság utáni szabályozás komplexitása a rendszerkockázattal, érdemes áttekinteni azokat a friss eredményeket, amelyekre az Európai Rendszerkockázati Testület Tudományos Tanácsadó Bizottságának kutatásai e tekintetben jutottak (Gai et al, 2019).…”

“…Mindezt tovább árnyalja a pénzügyi intézményeknek a kockázati súlyok, belső modellek és tőkekövetelményszabályozási jellemzők meghatározása terén biztosított mérlegelési jog terjedelmét érintő bizonytalanság. (Gai et al, 2019).…”

“…Robusztussá tehető-e a válság utáni pénzügyi szabályozás a nemzeti… nyújtotta versenyképességi előny megszerzése érdekében, számos esetben mesterséges érvekkel igyekeznek a szabályozót a terület vélt komplexitásáról meggyőzni, látszatkomplexitással terhelve a rendszert (Gai et al, 2019).…”

Corporate Digital Competencies for Digital Banking Innovation: Case Studies in Indonesian Banking Sector

“…With an aggregate asset of more than IDR 9,824 trillion from a total of 107 commercial banks in Indonesia (OJK, 2021) and a large number bankable unbanked population of 113 million, the banking industry is deemed as one of the most prospective business sectors in Indonesia (Mehrotra et al, 2015). However, banks are facing increasingly complex regulations (Gai et al, 2019), growing risk and operation challenges (Dewi, 2021) shrinking margins, and more intense market competition (de Souza Castor, 2022). More than ever, banks are under huge pressure to maintain and grow their market share.…”