Principles of the Optimal Government Regulation in the Financial Market

2023
Kristaps Freimanis, Maija Šenfelde

Theoretical concept of regulation is based on the existence of market failures, which are defined by the deviation from the perfect competition model. In the article the case of financial market with emphasis on the traditional banking market has been reviewed. In the article authors have disclosed the review of literature of the principles of regulation. Literature review covers the period from 1998 till 2022, reviewing 185 sources, from which 30 sources were selected for analysis. In this review authors have identified 12 principles of the optimal government regulation, including recently highlighted topic of climate-related risks. 68% of sources refer to the following 5 principles: (a) Cost-benefit balanced, (b) Risk based, (c) Consistency and competitive neutrality, (d) High quality, transparent decision-making, and enforcement, (e) International coordination, convergence, and implementation in policy and rulemaking.

Atslēgas vārdi
Banking market, government intervention, optimal level of regulation, systemic risk
DOI
10.1007/978-3-031-32931-9_5
Hipersaite
https://link.springer.com/chapter/10.1007/978-3-031-32931-9_5

Freimanis, K., Šenfelde, M. Principles of the Optimal Government Regulation in the Financial Market. No: New Challenges for the Banking Industry: Searching a Balance Between Corporate Governance, Sustainability, and Innovation. S.Carbó, P.Cuadros red. Cham: Palgrave Macmillan, 2023. 99.-115.lpp. ISBN 978-3-031-32930-2. e-ISBN 978-3-031-32931-9. ISSN 2523-336X. e-ISSN 2523-3378. Pieejams: doi:10.1007/978-3-031-32931-9_5

Publikācijas valoda
English (en)