Magazine
Latest Issue

The limits of financial regulation

By Jay Elwes  

In November last year, the Chancellor wrote to the Governor of the Bank of England asking him to look into the possibility of introducing a leverage ratio for banks. In the exchange of letters the Chancellor made clear his feelings that a ratio of this sort, which would limit bank borrowing levels, would make Britain’s financial system more stable.

But does there come a point at which financial regulation begins to have the opposite effect to the one intended? Is it the case that regulation provides an illusion of safety thereby encouraging complacency?

The consequences of this are not confined…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect