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Global Financial Regulation

Financial Regulation within the Global Financial System

The global financial system is the worldwide framework of legal agreements, institutions, and economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Today, the global financial system is comprised of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency and effectiveness of international markets. While 19th century economic theory saw financial markets as self-regulatory entities (e.g. Adam Smith's 'invisible hand' of the market), financial regulatory bodies have always played an important role in maintaining the integrity and efficiency of the financial system. 

Ever since the global financial crisis of 2008, policy-makers have sought to rectify the damage done to financial systems and economies by enacting a large set of financial reforms, both at the international and domestic levels. Currently, in Canada and abroad, debates over the most effective regulatory structure abound (for more on this in relation to Canada please see: http://www.bankofcanada.ca/wp-content/uploads/2012/01/fsr-0604-fay.pdf).

With a constantly growing number of financial regulatory bodies, the regulatory landscape today is both ever shifting and confusing. This guide was designed to help you make sense of the various financial regulatory bodies that currently operate around the world. It features: