Now is the time to create a prudential authority for the real economy
If banks are ‘too big to fail’, then surely manufacturers, hospitals and other critical industries are as well
16 April 2020 - 12:20
A recurring critique of commercial regulation is that it is usually enacted ex-post, or after the event. The avalanche of financial regulation that ensued in the aftermath of the Great Recession is a perfect example of this.
Nevertheless, few would argue against the pertinence of landmark legislation such as the Basel III Framework internationally, or the Solvency and Assessment Management Regime in SA. To paraphrase a well-worn Chinese character, the “opportunity” to reform the system after a shock occurs perhaps outweighs the initial danger presented by the shock itself...
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