408 Int. J. Public Policy, Vol. 14, Nos. 5/6, 2018
Copyright © 2018 Inderscience Enterprises Ltd.
Evolution of micro-prudential regulators and
macro-prudential regulators in the global financial
regulatory system
Hiteshkumar Thakkar
Gujarat National Law University,
Attalika Avenue, Knowledge Corridor,
Koba, Gandhinagar (Gujarat), India
Email: hthakkar@gnlu.ac.in
Abstract: The global financial integration (GFI) has augmented the
international financial flow movement without restructuring global financial
regulatory system (GFRS). The goal of the global financial regulatory system is
to maintain global level stability. In GFRS, the financial stability board (FSB)
is responsible for the macro-prudential regulation and the micro-prudential
regulation is monitored by international standard setting bodies (SSBs),
international financial institutions (IMF and World Bank) and national financial
regulators. These micro-prudential regulation and macro-prudential regulation
are non-binding in the legal sense. However, these regulations examine as a
standard of efficiency. The member nations are strictly implementing the
standards because it provides stringent firewall during the unwanted financial
turmoil. It also reflects the strength of the member nation. So, the evolution of
micro-prudential regulation and macro-prudential regulation is a continuous
process; it has to be evolved and developed as per the dynamic changes in the
global financial system.
Keywords: global financial integration; GFI; global financial regulatory
system; GFRS; macro-prudential regulation; micro-prudential regulation.
Reference to this paper should be made as follows: Thakkar, H. (2018)
‘Evolution of micro-prudential regulators and macro-prudential regulators in
the global financial regulatory system’, Int. J. Public Policy, Vol. 14, Nos. 5/6,
pp.408–422.
Biographical notes: Hiteshkumar Thakkar is an Assistant Professor of
Economics at Gujarat National Law University, Gandhinagar (India) since
2010. He holds a PhD degree in the subject of economics and law
(inter-disciplinary). His areas of research interest are global financial crisis,
global financial integration, global financial regulatory system and law and
macroeconomics. He has edited three books and published several papers in
books and journals. He is actively associated with research, training and
extension activities in the Centre for Law and Economics at Gujarat National
Law University, Gandhinagar (India).