ABSTRACT
The post-global financial crisis (GFC) global prudential governance (GPG) Regime is being called on to monitor increasingly divergent state-based approaches to behaviour that are diametrically opposed in many respects to the holistic approach of macroprudential regulation. This chapter begins by outlining the supposed benefits of the GPG Regime as a governance framework. It then considers the gradual shift in the GPG Regime to the need for greater consistency and compliance in recognition of some of the challenges posed through a governance regime too focused on offering flexibility. The reforms to the GPG Regime to address the problems of the GFC, sought to reflect an understanding that the consistent application of macroprudential regulation, in addition to microprudential regulation, were vital to the promotion of systemic financial stability. The chapter concludes with an exploration of the inherent limitations of the regime in light of twenty-first century socio-economic factors, including the more activist role of the state in regulating finance following the GFC.
