Society, Economic Policies, and the Financial Sector Y.V. Reddy

This is the Per Jacobsson Foundation Lecture 2012 delivered by the author at Basel, Switzerland. It is argued that the biggest challenge for the future of finance lies in designing governance practices that avoid the dangers of comprehensive regulatory capture. Approaches to regulation of the financial sector should continue to be national since the global environment is not necessarily favourable. In this regard, consideration of regulation, competition and ownership in the financial sector in an integrated manner, enhanced monitoring of financial market activities and the use of fiscal tools to supplement regulation could be helpful.

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