It includes video interviews (also below) with two researchers in financial law from the project, Prof Roman Tomasic and Dr Folarin Akinbami, about how we can learn from the banking crisis and what both financial institutions and regulators can do to help build resilience in financial markets through trust. The role of trust in financial markets is crucial to the stability of the global financial system. Mistrust leads to problems like ‘moral hazard‘ for example which is one of a number of factors that led to the banking crisis and is also of large importance to the debt crisis in Europe and the US. Tipping Points researchers advocate for a broader ‘principles-based’ approach to financial regulation based on ethics that if adopted could help make markets more resilient and prevent financial institutions, including banks, from dodging rules in place in order to make short-term profits that can inadvertently increase their vulnerability and lead to failure.
Your comments are welcome.
Report: Restoring Trust in order to Increase Market Resilience after the Global Financial Crisis (to download right-click link and choose ‘save link’ or ‘save target as’)