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Archive » June 2023 » The challenges for banking regulation in the current market environment

The challenges for banking regulation in the current market environment

Francesco Cannata, Giacomo Manzelli
June 2023 - n. 6
Keywords: Banche, regolamentazione, rischi
Jel codes: G21, G28

Over the past 25 years, banking regulation has gone through a process of deep reform. The new rules, while rather complex, have enabled the banking industry of major jurisdictions to improve their resilience to risks, including more innovative ones. A critical discussion of recent developments in the main regulatory areas (prudential capital framework, credit and Npl management, liquidity and balance-sheet equilibrium, climate risk) is a basis for a thorough assessment of the path taken so far and the challenges ahead for banks and regulators. It will be important to reconcile the improvement of the rules with the need to ensure stability of the overall framework.

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