The purpose of this paper is to provide an overview of current progress in financial sector reform and outline some of the remaining challenges.
The paper presents an analytical survey of recent developments.
The reform agenda is broad, ranging from strengthening prudential regulation; to enhancing supervision; from mitigating pro‐cyclicality to integrating micro‐ and macro‐prudential oversight; from reducing the systemic risk associated with large and complex financial institutions to expanding resolution process and fortifying financial market structure. Reforms are proceeding slowly but important building blocks have been laid down, such as Basel III; other difficult reforms are in the making, such as the resolution framework for cross‐border financial institutions or how to deal with systemically important financial institutions.
The paper presents a concise, comprehensive, and timely survey of the myriad financial reform efforts.
