Klaas Knot blames disharmony in regulation for higher risks
Governor urges commission to tackle the issue via CMU
A lack of harmonisation in European regulation contributed to the financial crisis and ought to be addressed as part of the capital markets union (CMU), according to Netherlands Bank governor Klaas Knot.
"Heterogeneity and inconsistencies in regulation can obscure how losses will be distributed once financial risks materialise," Knot told a conference organised by the International Capital Markets Association. "This can exacerbate the mispricing of risk in financial markets."
One of the
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