Financial innovation will proceed along with regulatory arbitrage.

Otherwise, global financial markets will be destroyed by regulatory arbitrage.

But substantial gaps remain and must be addressed through international cooperation in order to avoid regulatory arbitrage.

As is frequently pointed out, unless banking regulations are identical across frontiers, there will be plenty of scope for regulatory arbitrage.

To prevent such regulatory arbitrage, domestic regulators may be forced to take measures against financial transactions originating from jurisdictions with more lax regulations.

Financial regulation and supervision will surely be strengthened, but they will remain national in character, with little safeguard against cross border spillover and regulatory arbitrage.

The group calls their version of contingent capital regulatory hybrid securities.

I call this environmental arbitrage.

I did comic book arbitrage.

For emerging markets, the best way forward is to correct the incentives for interest rate arbitrage at the source of capital flows.

Indeed, the plethora of separate banking regulators had created opportunities for banks to arbitrage the system in search of a more indulgent approach to capital.

Recipient countries need to expand emerging domestic capital markets and strengthen the regulatory framework of financial systems.

China s decision to execute the head of its drug regulatory agency has rekindled international debate about capital punishment.

A good regulatory framework, including enforcement measures, needs to be established in order to develop a capital market.

More fundamentally, creating the regulatory institutions conducive to ownership separation may be impossible unless a society's political orientation towards labor and capital is more favorable to capital.

Subsequently, the arbitrage award established Brčko District of Bosnia and Herzegovina.

Much has already been done to advance regulatory reform, notably the recent agreement to strengthen bank capital (Basel III).

Better repayment prospects and lower regulatory capital costs then fuel the asset based financing of further acquisition of assets.

(a) Promote an economic and regulatory climate that is conducive to inward remittances and to capital inflows, in general.

Basel II also recommends a new, more differentiated and stricter regulatory capital criterion for various types of such ratings.

Eyes are opened the illusion of arbitrage between efficiency and solidarity fades.

They stressed that a sound regulatory framework had to be in place to complement the opening of a capital account.

Furthermore, by raising regulatory capital costs in boom times, some counterweight to the pro cyclical bias intrinsic to financial systems would be introduced.

Governments, however, need to understand the barriers to investment regulatory failures weak enablers, including financial and human capital poor infrastructure and substandard technology.

Regulatory issues

Regulatory action

partnership regulatory

This indicates that the renminbi s appreciation was driven mainly by short term arbitrage by outside funds.

To understand the precise problem, you must dip into the latest details of the Prudential Regulatory Authority s capital shortfall exercise with eight major UK banks.

Other regulatory controls

1. Regulatory framework

regulatory government guidance

regulatory voluntary action

Second, there are policy failures, which occur when undisciplined macroeconomic policies and inconsistent or ineffective financial regulatory policies heighten the risks associated with volatile capital flows.

Absent international coordination, the opportunities for destructive regulatory competition will defeat regulatory reform.

Legal and regulatory environment3

Regulatory and control framework

regulatory 0.15MtC (incl. business)

Some countries will opt for greater stability, imposing tough capital and liquidity requirements on their banks, while others may favor greater innovation and adopt a lighter regulatory touch.

Courtesy of that discounting mechanism, the risk adjusted yield arbitrage has now started to move against emerging market securities.

The Harm of Regulatory Disharmony

Regulatory philosophies are converging, too.

Franchising poses particular regulatory challenges.

2.1 Legislative and regulatory provisions

H. Deregulation and regulatory reform