Adaptation and resiliency in global Finance: Europe and Asia

Abstract

This paper begins by reviewing the development of the institutional framework for a single European financial market prior to the global financial crisis, identifying overall approaches through time directed towards achieving the objectives of financial integration and stability. From this basis, the paper discusses known weaknesses of the pre-existing institutional framework for financial and monetary affairs in the European Union and European responses to the global financial crisis, including the 2010 Eurozone financial crisis. The paper then considers the major proposals for reform of institutional arrangements to support financial stability and integration in the European Union, focusing on the Larosiere report of early 2009. Section IV discusses reforms to specific aspects of financial regulation, including capital, credit ratings, accounting standards and investment funds, focusing on recent and ongoing actions. The final section concludes by arguing that more needs to be done to achieve the twin objectives of financial integration and stability going forward.