The unprecedented spread of pandemic crisis has changed the paradigm of banking and financial regulation worldwide. Specifically, the Covid-19 has imposed emergency regulatory measures to contain the risk of default for businesses and households. Liquidity support and loans guarantees have been adopted by public authorities to mitigate the deterioration of debt market and commercial paper. However the policy makers and regulators have concentrated their attention on temporary and short-term ad hoc interventions that leave discretion in decision-making process. This article examines the UK regulatory responses to the pandemic outbreak addressing the challenges of “monetary financing” and the impact of exceptional lending schemes for consumers borrowers. It also discusses the regulatory toolkit adopted by the Financial Conduct Authority and Prudential Regulation Authority for keeping credit lines flowing and funding the marketplace (e.g. mortgages and payment holidays). The Bank of England has launched operations intended to release the banking sector of pressures in the time of coronavirus and reduce the economic contraction although this regulatory package seems a frenetic reaction to the unexpected risk of systemic collapses.
|Titolo:||The great lockdown: the UK regulatory responses to the pandemic crisis|
|Data di pubblicazione:||2020|
|Appare nelle tipologie:||01.1 - Articolo su rivista (Article)|
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|LEYR_vol_9_1_2020_The great lockdown the UK regulatory responses to the pandemic crisis.pdf||Articolo su rivista||Versione dell'editore||Tutti i diritti riservati||Open Access Visualizza/Apri|