Over 50% Think Global Regulation of FIs Not Practical, Finds Survey
Over 60% believe global regulation of financial institutions is not practical and 52% say tighter regulation will impede a recovery, according to a survey by international legal firm Norton Rose. This is in contrast to the 68% that think better regulation could have prevented the global crisis.
The fourth in the series of surveys tracking market sentiment in relation to the global financial crisis polled 197 respondents from financial institutions and other mainstream corporate entities. The questions examined a theme of ‘financial institutions in the future’.
Other findings of the survey were:
James Bateson, head of financial institutions at Norton Rose, said: “We are entering a new phase in relation to the global financial crisis. A more thoughtful approach is emerging as politicians and regulators seek to rebuild the financial system for the future. Whilst it is clear from our results that there is a commonly held view that regulation could have prevented the global financial crisis (66%) there is an interesting paradox in that effective global regulation is viewed as not practical (61%) and a majority of respondents believe tighter regulation could impede a recovery (52%). The issue that must be addressed is whether it was a failure of the regulation itself or the failure to effectively enforce. This is key to understanding how regulation should work in the future and ensuring it does not impede the recovery.”