Economic Implications of Proposed Regulations

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The set of regulations was published in December 2009, to which reactions and comments were solicited from financial institutions and market participants worldwide. On April 16, 2010, the set date for the submission of all commentary, nearly 300 different opinions were submitted representing hundreds of financial institutions, investor associations, and regulatory agencies throughout the world. The original text of these commentaries was released for public viewing on May 1, 2010, in the internet website of the Bank for International Settlements, the organization of all central banks worldwide.This dissertation represents the first attempt to collate and analyze the contents of the submitted commentary and gains insights into the nature of international banking regulations and the workings of the global market economy.Chapter 1 provides an introduction to the research undertaken, by presenting a background of the research situation, the objective to be met and the questions the research answered in order to fulfill the objective, the manner in which the research will be carried out, and a brief discussion of the importance of the research undertaking.The financial crisis that has affected the world economy from mid-2008 to the present has opened the old economic debate that has gripped the leading world economies since the dawn of the twentieth century, namely the role that government regulation should ideally play in the determination of economic policy. Two opposing schools of thought have at one time or another guided economic development since the end of World War II. President Franklin Delano Roosevelt’s US post-war economy was dominated by the Keynesian economic principle of the planned economy.