Regulation is “running riot” and authorities need to execute a U-turn in favour of simpler and more stable legal frameworks, a group of academics is warning.
Experts from the Institute of Economic Affairs, as well as universities including Durham, Oxford and Cardiff, have signed a joint statement claiming that banking rules around the world are “too complex, as well as being dangerous and unnecessary” and arguing that deposit insurance should be abolished altogether.
They have counted 14,200 new banking regulations worldwide last year alone, citing also America’s Dodd Frank Act, which will contain about 30,000 pages of rules. They also attack “extraordinarily complex” accounting standards and demand the scrapping of forthcoming Solvency II regulations for the insurance industry. The demands come amid a fierce debate about whether the drive to clamp down on excesses in the financial services sector has gone too far and too fast.
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