WP 8 Final Policy Report

Paul Nightingale
Work package: 
WP 8
Publication number: 
01 February 2012

Abstract: This Work Package reviewed and analysed financial service innovation in the light of current policy concerns about the financial crisis. More particularly, it explored 'technological trajectories' in banking and their relation to regulation.

WP 8 aimed to improve understanding of how shifts from the current trajectory based around re-engineering the risk of default, to one that takes more account of liquidity risks will take place. This analysis integrated research on financial technology within an evolutionary framework that informs public and academic debates and the effective generation and regulation of financial innovations within Europe. There was a particular focus in the project on risk management technologies, and particularly those technologies, such as CDOs and CDSs whose collective failure helped create the recent financial crisis. WP 8 has produced a number of interesting findings and high-level policy interventions, including work that was cited in the recent Vickers Inquiry report into the regulation of the UK financial sector.

FINNOV DP8.4139.0 KB