## Summary

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### Main assessment of post-crisis regulatory reform
- The global financial crisis forced an overhaul of the global financial regulatory architecture.
- New standards, tools, and practices were developed, implementation was launched across the world, and the IMF was an important contributor to this effort.
- A decade after the global financial crisis, much progress has been made in reforming the global financial rulebook.
- The broad agenda set by the international community has given rise to new standards that have contributed to a more resilient financial system—one that is less leveraged, more liquid, and better supervised.

### Key successes and reforms implemented
- Implementation of the Basel III capital and liquidity accords.
- Widespread adoption of stress testing for the banking sector.
- Forms of shadow banking more closely related to the global financial crisis have been curtailed.
- Most countries now have macroprudential authorities and some tools to oversee and contain risks to the whole financial system.
- Bank supervision has become more intensive, especially at large banks.
- Bank resolution regimes have been improved, with the expectation of government bailouts appearing to have diminished.

### Areas needing consolidation or further progress
- Complete implementation of the leverage ratio.
- Complete implementation of frameworks for the cross-border resolution of banks.
- Complete implementation of frameworks for insurer solvency.
- Ensure macroprudential authorities have an adequate toolkit to contain systemic risks.
- Build upon existing progress in challenging areas such as bank compensation practices and use of credit rating agencies; consider new thinking where appropriate.

### Policy recommendations and strategic priorities
- Continue coordination of financial sector reform efforts internationally.
- Undertake an evaluation of the broader impact of the reforms 10 years after the global financial crisis and assess any unintended consequences.
- Support a proportionate approach to regulation and supervision—assign the complexity of technical standards, supervisory efforts, and scrutiny in proportion to an institution’s systemic importance and a jurisdiction’s global importance.
- Avoid rollback of reforms, which could spawn opportunities for regulatory arbitrage and lead to a race to the bottom in regulation and supervision—this could make the global financial system less safe and jeopardize financial stability.
- Maintain regulatory and supervisory vigilance as the financial system evolves and new threats emerge.

### Emerging risks and supervisory priorities
- Give priority to oversight in new areas such as fintech and cybersecurity.
- Continue vigilance on the perimeter of prudential regulation, in areas such as asset management.
- Recognize that no regulatory framework can reduce the probability of a crisis to zero; regulators need to remain humble.
- Monitor migration of risks to new areas and remain vigilant to their evolution.

*REGULATORY REFORM 10 YEARS AFTER THE GLOBAL FINANCIAL CRISIS: LOOKING BACK, LOOKING FORWARD — CHAPTER 55International Monetary Fund | October 2018*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch2/doc/sum2.pdf_