A look at evolving reforms around global cross-border regulations of financial entities, and the business and technology implications for systemically important financial institutions

Systemic linkages throughout the global financial services industry played an important role in propagating the recent financial crisis across geographical boundaries. Many of the organizations that were worst hit by the crisis also had access to global liquidity pools and cross-border business operations and assets. These, coupled with the global nature of the financial services industry, led to the creation of a contagion effect that traversed national boundaries. A cohesive and globally standardized regulatory response to the financial crisis was handicapped by the jurisdictional fragmentation1 based on national boundaries.

This paper is part of Capgemini’s What You Need to Know series dedicated to Financial Services Regulations.