As well as addressing the Basel Committee's proposals to strengthen global capital andudliquidity regulations, this paper also considers several reasons why information disclosureudshould be encouraged. These include the fact that imperfect information is considered to be audcause of market failure which “reduces the maximisation potential of regulatoryudcompetition”, and also because disclosure requirements would contribute to the reduction ofudrisks which could be generated when granting reduced capital level rewards to banks whoudmay have poor management systems. Furthermore it draws attention to the need for greaterudmeasures aimed at consolidating regulation within (and also extending regulation to) theudsecurities markets – given the fact that „the globalisation of financial markets has made itudpossible for investors and capital seeking companies to switch to lightly regulated orudcompletely unregulated markets
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