An introduction to G20 financial regulatory reform

G20 Regulatory Reform - RegTechFS 2013
G20 Regulatory Reform – RegTechFS 2013

Following the 2008 financial crisis, the Group of 20 (G20) Summit was established as an international forum for the heads of government of the world’s major economies.  Having met three times in 2008-9, the Group was able to agree the root causes of the crash and put in place a high level plan to redress those causes.  Therefore, when we talk about G20 financial regulatory reform today, we are referring to all financial regulation across the globe that has been drafted as a response to the 2008 financial crisis and the work of the G20.

Of course, since 2009, many new issues have come onto the agenda, such as benchmark regulation, and others in fact predate the G20, such as the Basel Accord.

The Basel Committee is an organisation of central bank governors which predates the G20 and the 2008 financial crisis.  However, they are responsible for setting common approaches to risk supervision across their members, who again include most of the world’s major economies and financial centres. Originally convened in 1974 to prepare universal standards for banking practices, the Basel Committee is largely responsible for the new reforms to capital requirements and activity metrics that many countries have adopted for their banking systems. The Basel Committee is a major factor in the G20’s wishes to promote financial sector reform and inclusion.

The regulatory landscape is constantly changing, and there are as many versions of these rules as there are countries in the world.  Therefore, it would be impossible to cover every authority in the world and we have taken a focus on the US and EU.  If you would like to suggest any amendments, or that we cover something we haven’t covered, you can contact the administrator here.