Financial Services

Shadow Banking, the Elephant in the Room

david phillips labour economy

Recent developments in bank regulation have increased capital requirements for banks and so constrained lending, which shows up in small business struggling to secure finance. The regulations originate from the Basel Committee on Banking Supervision (BCBS) (Basel III – new measures to strengthen regulation, supervision and risk management) and the European Union Capital Requirements Directive… Read More »

Editorial: Towards a More Stable Global Financial System

david phillips global financial stability

Resolving Macro-Prudential Matters Without Taxpayer Subsidy And so the US Federal Reserve brings to an end its $3.7 trillion QE experiment which ostensibly was introduced to kick start the economy, though this programme combined with a zero interest rate policy (two “subsidies”) has also enabled misallocated capital to continue propping up zombie companies. We must… Read More »

UK Financial Sector Needs Better Not More Regulation

UK financial services regulation

Douglas Flint, Chairman HSBC along with a number of other senior bankers (FT 7th August) are said to be critical of the ways UK financial regulators are now operating. Other press articles have also give the impression that the UK Government’s financial services regulatory requirements applicable now and being consulted on for the future, are… Read More »

Banking Supervision Challenges for the UK

UK financial services regulation

The one-size-fits-all approach from the Basel Committee on Banking Supervision has, inevitably, run into various challenges. Not surprisingly from London where Mark Carney, Governor of the Bank of England. On the one hand Mr Carney would like to make it easier for smaller ‘challenger’ banks to lend to the ‘small to medium enterprise’ (SME) sector… Read More »

Is it Time to Strip Banks of their Power to Create Money?

Ben Dyson Money Credit

Martin Wolf, the chief economics commentator at the Financial Times, has recently argued that we should “strip banks of their power to create money”. In his column, he refers to proposals in the book I co-authored, Modernising Money (see below). The book explains how the power to create money can be removed from the banks that caused the financial crisis and returned to a democratic, transparent and accountable body working in the public interest.

Global Rules v UK Public Interest: New Companies Commission Needed

companies commission fearnley

It is now recognised in the UK that International Financial Reporting Standards (IFRS) mandated by the EU along with the voluntary adoption by the Financial Reporting Council (FRC) of International Auditing Standards (ISAs) in 2005 contributed significantly to the financial crisis by allowing banks to overstate profits and asset values.