This week’s topics
The Rationale for Financial Regulation
- Systemic risk mitigation
- Market failure and externalities
- Asymmetric information and moral hazard
- Investor and consumer protection
- 12. Misbehavior, Crises, Regulation and Self Regulation
- Alireza Tahbaz-Salehi: Systemic Risk and Financial Stability
- Financial Risk and Regulation: New Ideas for Reforming Prudential Regulation
What you will be able to do
- 3.1 Explain the need for legislation and regulation to control the financial services industry.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: explain the need for legislation and regulation to control the financial services industry.
Study materials
Videos
- Alireza Tahbaz-Salehi: Systemic Risk and Financial Stability · YouTube · Columbia Business School · 18 min · for registered students
- Financial Risk and Regulation: New Ideas for Reforming Prudential Regulation · YouTube · Columbia Business School · 60 min · for registered students
- Unintended Consequences of the New Financial Regulations · YouTube · LSE · 90 min · for registered students
- BoE Financial Policy Committee, an Experiment in Macro Prudential Management · YouTube · LSE · 60 min · for registered students
- Managing Risk and Behaviour in Financial Markets · YouTube · LSE · 96 min · for registered students
- Asymmetric Information in Finance Explained - Raghavendra Rau · YouTube · Gresham College · 63 min · for registered students
Further resources
- Money and Banking, ch. 11: The Economics of Financial Regulation · PDF · Saylor Academy, textbook chapter; pp. 242–267 · for registered students
- Financial Services and Markets Act 2000 · Reading · legislation.gov.uk, legislation · for registered students
- Market abuse (Financial Conduct Authority) · Reading · Other, guidance · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
