Financial Stability Review no. 21: April 2017

The 21th edition of the Banque de France Financial Stability Review (FSR) analyses the impact of financial reforms, eight years after the 2009 G20 action plan. With most elements of this plan now being finalised, concerns are being raised as to the potential negative effects of the new regulations, with some even questioning the need for robust global regulations to safeguard financial stability. In order to contribute to this debate and provide some factual clarifications, the FSR brings together the views of public authorities, academics and industry representatives. With the benefit of a few years’ hindsight, and based on the results of several assessment exercises, the various contributions point to a twofold outcome for the G20 financial reforms: a major achievement and a demanding challenge. The achievement is that the regulatory reforms put in place since the crisis have made the global financial system substantially more resilient, with no noticeable adverse impact on economic growth. The challenge now is to finalise the regulatory framework and ensure its enforcement over the long term.