In the aftermath of the 2007-09 global financial crisis, regulators in all major jurisdictions introduced significant new requirements for financial firms. Certainly justified in purpose, these regulations have increased market barriers, both directly through specific obligations, and indirectly through the sheer magnitude and complexity they involve. Regulators primarily focused on bolstering financial stability and consumer protection, while frequently disregarding their objective of promoting financial innovation. Ten years after the crisis, we believe that it is time to reconsider the appropriate balance between those objectives.
Wolf-Georg Ringe is Professor of Law and Director of the Institute of Law & Economics at the University of Hamburg as well as a Visiting Professor at the University of Oxford. Christopher Ruof is Research Associate at the University of Hamburg.