A Critical Analysis of the Regulatory and Macroprudential Policies in the UK
Abstract
Abstract
The focus of the study is the regulatory and macroprudential policies applicable in the UK
and EU banking sectors during Covid-19. The research utilises a qualitative research method,
whereby secondary data was sourced from journal articles, legislation, books, websites, and
reports. Considering the adverse impacts of the pandemic, the study argues that the
development of macroprudential policies (MPMs) meant to mitigate systemic risks through
regulating the endeavours and practices of the UK and EU financial institutions requires
necessary legal frameworks for subsequent efficacy of these policies. MPMs are crucial tools
in the regulation of banking institutions by mitigating systemic risks and reducing the
occurrence of financial crises. The study has explored the instruments applied by the UK and
EU regulators to address the issues emerging from Covid-19 and further assessed their
efficacy. The research also identified factors such as multiagency coordination, development
and amendment of relevant laws, strategic planning and stakeholder collaboration as crucial
in fostering the effectiveness of the policies. The project also proposed some
recommendations relevant to the current topic and has provided suggestions for future
research.
Keywords: banking sector, Covid-19, macroprudential policies, Integrated Policy Framework.