Globalization Is in Peril, Bankers Say

The Institute of International Finance warns about restricted flows for capital in a report "Financial Globalization: Maximizing Benefits, Containing Risks." The report analyzes “the slowdown of cross-border flows and raises concerns that while the recent regulatory agenda should help to ensure a more stable and secure financial system, the extensive benefits from cross-border flows could be jeopardized by certain aspects of recent reforms.” The report also warns about the “increasing lack of harmonization and coordination of global regulations across borders” and points out that “Excessive regulatory inconsistency is likely to act as a drag to cross-border financial transactions and an effective global financial market.” The report concludes that the G20 and Financial Stability Board, an international body with 25 central bank members that monitor and make recommendations about the global financial system, offer the best institutional frameworks for greater consistency and increased cooperation. – YaleGlobal