Given the potential costs of regulation, the objectives and rationale of regulation need to be made clear. The paper argues that the ultimate rationale of regulation is not paternalistic but, in order to correct for market imperfections and failures, to offer consumers the benefits of economies...

In recent years major banking and financial crises have emerged in several countries. Banking systems seem to have become more crisis‐prone. Banks in many countries have very high levels of non‐performing loans, there has been a major destruction of bank capital, banks have failed, and...

The purpose of this paper is to set the proposed new capital adequacy arrangements in the wider context of what is termed a regulatory regime. The central theme is that the components of the regulatory regime need to be combined in an overall regulatory strategy, and that while all the...

The purpose of the paper is to offer an analytical framework for the Treating Customers Fairly initiative of the Financial Services Authority. The TCF agenda is set in the context of theory of consumer behaviour. The central theme is that retail financial transactions are fundamentally different...