A recent response to the financial crisis has been to reinvigorate the use of external auditors in financial regulation. The U.K. Prudential Regulation Authority and Financial Conduct Authority are to use external auditors in a more systematic way than was the case with the Financial Services...

Roughly eight years after the adoption of its legal basis, an assessment of the Single Resolution Mechanism remains difficult. With only one resolution case completed so far, a substantial part of the resolution framework has not yet been tested. While the recent inauguration of the European...

In November 2021, the President’s Working Group on Financial Markets (PWG) issued a report analyzing the rapid expansion and growing risks of the stablecoin market. PWG’s report determined that stablecoins pose a wide range of potential hazards, including the risks of inflicting large losses...

This paper compares the competitiveness and resilience of firms governed by a single board that were considered “too big to fail” in 2008 with firms governed by a network of boards. Network governance introduces a division of power, checks and balances with stakeholder engagement....

Objectives-based legislation - or laws which focus on achieving particular and concrete outcomes - has become a new and important tool that financial sector regulators use to tackle large and varied financial system risks. Yet, objectives-based legislation - and the frequent principles-based...

European Union (EU) countries offer a unique experience of financial regulatory and supervisory integration, complementing various other European integration efforts following the Second World War. Financial regulatory and supervisory integration was a very slow process before 2008, despite...