financial egulation.doc

Introduction and Perspectives FSA存在的意义： 为了to make the new decision-making framework work in practice（例如：commitment to cost-benefit requirements），所以需要：1 need a clearer view of the economic case for regulation of financial markets, and 2 a rigorous approach to assessing whether that case is met in relation to a particular set of institutions, 这篇文章的主题： why regulation has welfare benefits, why it is rational for (particularly retail) consumers of financial services to demand regulation of financial services firms. 关于who judge that there is a positive role and economic rationale for regulation in finance 与those who argue that, at best, regulation does not enhance welfare and at worse is counter-productive,两种观点的区别： (1) how financial institutions and markets work and operate in practice, (2) the incentive structures faced by financial firms, (3) the extent of market imperfections and failures in the financial system and the power of regulation and supervision to address them, and (4) the extent to which financial products and contracts are significantly different from the generality of goods and services which are not regulated to anywhere near the same degree as financial institutions. 在深入讲之前，1 要分清regulation和monitoring的区别P6。 2 由于regulatory agencies是largely imposed by the regulator even though there may be a process of consultation，所以会产生一些问题：一些信息的缺失，顾客的不同要求不能被signalled。 3 正因为如此，会产生danger of regulation being over-demanded by consumers and over-supplied by regulators。例如：how to guard against such demand- or supply-driven over-regulation.原理：regulation impose 各种cost，这些cost最后会反映在financial service的价钱上。如果regulation 是多余的，或着重在不重要的事务上，那么会产生avoidable cost 而且会大于regulation当初的成本。4 一般认为，regulation is about changing the behaviour of regulated institutions. 由此产生问题：the extent to which behaviour is to be altered by way of externally imposed rules, or through creating incentives for firms to behave in a particular way. Incentive contract 的设置的好坏影响着regulated firms 的行为，也会产生副作用。 一些人are sceptical