Lessons from the banking crisis

The Corriere del Ticino has published a commentary by Swiss Finance Institute Senior Chair in Finance Professor Giovanni Barone-Adesi, in which he describes the limitations of global banking regulation and how these limitations contribute to the ongoing turmoil in the world financial markets.

Barone-Adesi argues that risk management strategies tend to monitor risk rather than actually managing it. He explains that regulatory laws developed in a different era, designed for different purposes, fail to price the risks taken by our financial institutions.

"The architecture of the banking system, created with the best intentions after the Great Depression, is now showing cracks," writes Barone-Adesi.