The Bank for International Settlements released its 80th Annual Report today, to coincide with its annual general meeting, describing how international regulatory efforts are striving to make the financial system less procyclical and prone to shocks.
The report is an important snapshot of global intellectual consensus on the economy, the financial system, and regulatory reform.
Giving an overview of the macroeconomic situation and touching on derivatives, the report explains that the thrust of new regulation is to reduce the risk of individual firms failing, as well as of systemic failure.