What do the coronavirus pandemic and climate breakdown have in common? They both present a huge threat to global financial stability, stemming from massive global negative externalities rooted in ecological change. They both entail dramatic economic, financial and social damage. And, despite continued warning of their certainty from scientists, we have failed to systematically consider […]
In the Bank of International Settlements’ (BIS) latest podcast Bruno Tissot, Head of Statistics and Research Support at BIS, discusses how we can best use big data, the opportunities and challenges it presents, and the policy issues it creates. Tissot likes to see big data as organic data as opposed to static data: static data is collected […]
What will be behind the next global financial crisis? According to the Bank for International Settlements (BIS), it could be climate change, which has the potential to unleash ‘extremely financially disruptive events.’ In their words — “integrating climate-related risk analysis into financial stability monitoring is particularly challenging because of the radical uncertainty associated with a […]
The Bank for International Settlements has launched FRAME, a public, online and interactive repository of studies on the effects of financial (especially banking) regulations. While many readers of this newsletter are focussed on what and how information is collected from regulated organisations, as well as the rules that underpin those data collections, arguably not enough time […]
A paper published by BIS this week supports the – hopefully uncontroversial – view that financial regulation upheld by international standards is vital for economic growth. The working paper studies the effects of prudential regulation, financial development and financial openness on economic growth. Based on an analytical review of the channels through which prudential regulation can affect growth and an empirical analysis of the economies in 64 countries, the paper concludes that growth is promoted by regulation that mitigates financial risks. At the same time, financial openness tends to reduce the growth benefits of regulation, potentially due to the opportunities to associated with regulatory arbitrage: conducting financial business in countries where the rules are less strict, or at least different.
At XBRL International we believe that there is an extraordinary opportunity for collaboration both between regulators and amongst the regulated to improve clarity, improve outcomes and to bring about significant simplification. It’s also a chance to lower the costs associated with inconsistent regulations imposed on business. JP Morgan Chase seems to agree.