• Corpus ID: 17851468

11 Financial Regulation in Europe: Foundations and Challenges

  title={11 Financial Regulation in Europe: Foundations and Challenges},
  author={Thorsten Beck and Elena Carletti and Itay Goldstein},
This chapter discusses recent regulatory reforms and relates them to different market failures in banking, based on the recent theoretical and empirical literature with focus on insights from the recent crisis. We also provide a broader discussion of challenges in financial sector regulation, related to the regulatory perimeter and financial innovation as tools financial market participants use to evade tighter regulatory frameworks. We argue for a dynamic view of regulation that takes into… 
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