Washington, D.C. – Eight years after the worst of the financial crisis, the new U.S. financial regulatory structure is largely in place. It is now time for policymakers to assess the cumulative impact of the regulations on the condition of the financial system, economic growth, consumers, and businesses.
The Bipartisan Policy Center’s Financial Regulatory Reform Initiative has taken an initial look at these issues in a new paper, Did Policymakers Get Post-Crisis Financial Regulation Right?
“Americans have a safer financial regulatory system than before the crisis, but there are some less-than optimal outcomes and unintended consequences of post-crisis reform that warrant attention,” Justin Schardin, director of BPC’s Financial Regulatory Reform Initiative, said.
The paper reports that consumers are better protected than before the crisis, but some face increased barriers to affordable credit. Other unintended consequences include the curtailment or migration of certain activities from banks to nonbank providers, and a lack of coordination on rulemaking. The paper also identifies gaps in financial regulation that either have not been addressed or have emerged since the crisis.
BPC recommends a formal assessment of the post-crisis financial regulatory structure, both by regulators and by an independent commission appointed by the next president and Congress.
The new paper can be found here
Justin Schardin is available for comment.