Single vs Multiple Financial Regulators

SINGLE Vs. MULTIPLE FINANCIAL REGULATORS

An analysis of the financial regulatory systems followed around the world

By: Sudharsan S Sandeep Kumar Natharali Razvi Vijay PJ Natarajan P Neeraj Kannoth (118) (110) (32) (59) (31) (106)

TABLE OF CONTENTS

1 1.1 1.2 1.3 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 INTRODUCTION Financial System Financial Regulation Types of Financial Regulation SINGLE REGULATION Arguments favoring single regulator Rise of complex financial products Difficulty in overall risk assessment Increased Accountability Economies of scale Minimizing duplication Staffing Challenges of the single Regulatory System FINANCIAL REGULATOR OF THE UNITED KINGDOM The Financial Services Authority FSA’s approach to regulation FSA – Working Framework Working Bodies of FSA Objectives of the New Regulatory Bodies MULTIPLE REGULATORS Central Bank Regulators of Banks & Financial Services Regulators of Insurance Regulators of Financial Markets Advantages of Multiple Regulators Challenges before Multiple Regulators Unified Regulation: The Way Forward? THE FINANCIAL REGULATORS OF AMERICA Federal Reserve Board Consumer Financial Protection Bureau Federal Deposit Insurance Corporation Financial Industry Regulatory Authority Securities and Exchange Commission Office of the Comptroller of the Currency Office of Thrift Supervision (Closed) State Regulatory Agencies 4 4 5 5 7 8 8 8 8 9 9 9 10 11 11 11 12 14 17 18 18 18 19 19 20 20 21 22 22 23 25 26 28 29 29 31 Page | 2

6 6.1 6.2 6.3 6.4 6.5

FINANCIAL SECTOR IN INDIA Banking Sector Indian Financial Regulatories List of Financial Regulatory Authorities in India Issues with the Regulatory Authorities in India Merging of Indian Financial Regulatory Authorities: Prudent?

32 32 32 33 34 36 38

7 CONCLUSION

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INTRODUCTION

Financial systems and financial regulators are entities setup by the government of a country to ensure...