Financial regulatory reform proposals fall short in preventing future crises.
The recent global financial crisis showed that regulations failed to prevent the crisis. To improve regulation, policymakers in the UK, US, and EU proposed reforms, but these proposals differed. The key challenges for financial regulatory reform are how to structure regulatory systems, whether to separate supervision and consumer protection, who should manage systemic risk, and how to regulate cross-border financial services. However, the reform proposals do not fully address these challenges, leaving room for future regulatory failures.