Regulatory cycles make it nearly impossible to address financial regulatory concerns adequately, and systemic risk in particular is difficult to address if rules are enacted in a cyclical and reactive format.
Source quote, verbatim
Regulatory cycles also make it nearly impossible to adequately address financial regulatory concerns. Systemic risk is particularly difficult to address if rules are enacted in a cyclical and reactive format.
Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857
Holds when
rules enacted cyclically and reactively
Classification
failuresupport: arguedfailure: systemic risk unaddressable by cyclical rulesfamily: regulatory-lagsystemic-riskrisk-and-incentivesregulatory-failure
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