The global financial crisis of 2008 served as a stark wake-up call, exposing critical weaknesses within the international financial architecture. In the aftermath, a wave of regulatory reforms swept across the globe, driven by the urgent need to prevent future crises and safeguard the global economy.

Key Areas of Reform

The reforms targeted several key areas:

• Increased Capital Requirements: Banks were required to hold more capital, acting as a buffer against potential losses.
• Enhanced Supervision: Regulatory oversight was strengthened to detect and address emerging risks more effectively.
• Derivatives Regulation: Measures were implemented to increase transparency and reduce systemic risk in the derivatives market.
• Resolution Regimes: Frameworks were established to allow for the orderly resolution of failing financial institutions, minimizing disruption to the broader economy.

Impact and Challenges

These reforms have had a significant impact on the financial landscape, fostering greater resilience and stability. However, challenges remain in ensuring consistent implementation across jurisdictions and adapting to the evolving nature of financial markets. Continuous monitoring and adaptation are crucial to maintaining a robust and resilient global financial system.