As we sit down to deliberate upon the consequences of new international supervisory framework today, the milieu is strikingly similar to what existed more than two centuries ago. Even today, the global economy continues its struggle out of retrenchment in output suffered during the financial crisis, proving right the adage “more the things change, more they remain the same”.
Even as the standard setting bodies (SSBs) have embarked upon various regulatory reforms to nurture the financial system out of quagmire that it had gone into before the outbreak of the crisis, we feel it is worthwhile to deliberate upon the unintended consequences of the new international regulatory/supervisory measures and chart out ways to counter the potential adverse fallouts.