Financial regulation – the need for a revolution
How is Banking Regulation Changing, and How Could it be Better?
Article first published online: 18 OCT 2012
© 2012 The Author. Economic Affairs © 2012 Institute of Economic Affairs. Published by Blackwell Publishing, Oxford
Volume 32, Issue 3, pages 6–10, October 2012
How to Cite
Lilico, A. (2012), How is Banking Regulation Changing, and How Could it be Better?. Economic Affairs, 32: 6–10. doi: 10.1111/j.1468-0270.2012.02167.x
- Issue published online: 18 OCT 2012
- Article first published online: 18 OCT 2012
- Vickers Commission;
- deposit insurance;
- bank regulation;
- financial crisis
Since the financial crisis there have been some positive moves with regard to bank regulation – especially in relation to ensuring that bank bondholders can lose their capital in the event of a bank failure. However, the increased guarantees to depositors are a retrograde step. The government should remove guarantees of depositors’ capital and, instead, provide some guarantee of their liquidity.