FSA publishes Occasional Paper comparing approaches to maintaining systemic stability

The Financial Services Authority (FSA) today publishes the tenth in its series of Occasional Papers. A More Market Based Approach To Maintaining Systemic Stability by Professor David Mayes of South Bank University focuses on the conditions necessary to deliver effective market-based incentives in order to improve the regulation of banks. He appraises the New Zealand model of bank regulation, with its emphasis on market discipline and disclosure, and examines the feasibility of introducing comparable arrangements in the European Union, where by contrast with New Zealand domestically-owned banks predominate.

Notes for editors

1. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

2. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.

3. Professor Mayes is Professor of Economics at South Bank University, London and Adviser to the Board of the Bank of Finland.

4. The paper is written in his personal capacity and the views expressed are not those of the FSA.

5. The FSAs Occasional Papers series is designed to encourage informed debate about financial regulation issues and has covered such topics as the rationale for regulation and the benefits of a single financial regulator, cost-benefit analysis in financial regulation, the International Financial Architecture, and the Price of Retail Investing in the UK. Copies of Occasional Papers are available from FSA publications, and can be found on the FSA Website: www.fsa.gov.uk.

Appended information

This Occasional paper is available from the publications section of our web site. The direct URL is http://www.fsa.gov.uk/pubs/occpapers/op10.pdf.