The answer, as in many other areas of complex decision-making, is simple. Or rather, it is to keep it simple. For studies have shown that the frisbee-catching dog follows the simplest of rules of thumb: run at a speed so that the angle of gaze to the frisbee remains roughly constant. Humans follow an identical rule of thumb. Catching a crisis, like catching a frisbee, is difficult. Doing so requires the regulator to weigh a complex array of financial and psychological factors, among them innovation and risk appetite. Were an economist to write down crisis-catching as an optimal control problem, they would probably have to ask a physicist for help. Yet despite this complexity, efforts to catch the crisis frisbee have continued to escalate. Casual empiricism reveals an ever-growing number of regulators, some with a Doctorate in physics. Ever-larger litters have not, however, obviously improved watchdogs’ Frisbee-catching abilities. No regulator had the foresight to predict the financial crisis, although some have since exhibited supernatural powers of hindsight. So what is the secret of the watchdogs’ failure? The answer is simple. Or rather, it is complexity. For what this paper explores is why the type of complex regulation developed over recent decades might not just be costly and cumbersome but sub-optimal for crisis control. In financial regulation, less may be more. Section 2 sets out the reasons why that might be, drawing on examples from outside economics and finance. Section 3 contrasts that thinking with the rapidly rising-tide of financial regulation.
Anita Angelovska Bezhoska: Welcome address - National Bank of the Republic of North Macedonia fintech event Welcome address by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of North Macedonia, at the NBRNM fintech virtual event, Skopje, 28 July 2021. *** Good morning to all. It is my pleasure to welcome you to this virtual event today. The purpose of the event is twofold: 1) to share with you the results of the activities we are taking as part of our ongoing efforts to support the fintech development and 2) to announce our next steps in fintech segment. This event would not be possible without the European Fund for SouthEast Europe, an institution with a prominent role in promoting responsible financial sector development. We are very thankful for its continuous support in different areas of our activities, including Fintech. I would also like to extend a gratitude to Mr. Jay Tikam, a financial expert who will present the findings from the first national Fintech Survey that we jointly conducted. Let me now shed some light on a couple of important dimensions related to fintech such as the specific circumstances that brought this issue to the fore in the last decade, the benefits it brings to the society, the role of policy makers/regulators in this segment, the current state and the priorities and challenges ahead. Although "fintech" is a relatively new term, technology has always played an important role in the financial sector.