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Ten years on: fixing the fault lines of the global financial crisis

Author

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  • Carney, M.
Abstract
It is nearly ten years since the global financial crisis began in the summer of 2007. A decade on, its aftershocks are still being felt not just in the financial markets at the epicentre, but across households and businesses globally. In the immediate aftermath of the crisis, G20 leaders created the Financial Stability Board (FSB) to fix the fault lines of the financial system, working with national authorities and international standard-setting bodies. Given the depth of the problems and the scale of the solutions needed, detailed policy development and implementation has taken time. But now all the main elements of the reform package have been agreed, and their implementation is well underway. Ten years on from the financial earthquake, the global financial system has been reregulated – leaving a safer, simpler, and fairer financial system that can support open markets and inclusive growth. The post-crisis reforms have laid the foundations of an open and resilient global system. The reforms are built on the four pillars of: making financial institutions more resilient; ending the problem of financial institutions being too-big-to-fail; making over-the-counter (OTC) derivatives markets safer; and transforming shadow banking into resilient market-based finance.

Suggested Citation

  • Carney, M., 2017. "Ten years on: fixing the fault lines of the global financial crisis," Financial Stability Review, Banque de France, issue 21, pages 13-20, April.
    • Handle: RePEc:bfr:fisrev:2017:21:02
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    References listed on IDEAS

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