Mersch considers unintended consequences of regulation
‘Unintended consequences’ of reform may create new externalities, Mersch says
Eurozone policy-makers must be careful their attempts to reform financial regulation "do not inadvertently create new externalities", a member of the executive board of the European Central Bank (ECB) said on November 12.
Regulatory reforms since 2009 had tended to be complex, Yves Mersch told an audience in London. Regulators should be careful of the "potential unintended consequences" of banks diverting resources into compliance and away from the "technological adaptation that is key for their
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