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Interview with Martin Oxley, country head, UK Trade & Investment

Interview with Martin Oxley, country head, UK Trade & Investment read more

Regulatory response to the crisis: Basel III – costs and benefits

written by: Dr Tatiana Fic, National Institute of Economic and Social Research, London. National Bank of Poland, Warsaw. read more

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Interview with Martin Oxley, country head, UK Trade & Investment



Congratulations on your new role, Martin. What are you most looking forward to in the new job?

Thanks very much; most appreciated. Over the last few weeks I have received many letters and e mails wishing me all the best in my new role. I've also had the pleasure to meet everyone in the team and I can honestly say I am really looking forward to working with you. I'm joining UKTI at a very exciting time. A new strategy, a ruthless focus on enabling British companies to expand international trade and a time when we are focused on attracting increased levels of direct investment into the UK. For the next 12 months, Poland will be in the global spotlight – the Polish Presidency of the EU during the second half of 2011 and the UEFA Euro football championships in 2012 will act as catalysts to attract British interest in the country.

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Regulatory response to the crisis: Basel III – costs and benefits

written by: Dr Tatiana Fic, National Institute of Economic and Social Research, London. National Bank of Poland, Warsaw.



The global financial crisis and Basel III

The Great Financial Crisis that hit the world in 2007 and the Great Recession that followed in 2009 is considered to be the worst crisis since the Great Crash of 1929 followed by the Great Depression of the 1930s. From the policy perspective the crisis resulted from two policy errors: myopic monetary policy and inadequate regulatory policy which were pursued during the period of the Great Moderation. The lax monetary policy and historically low interest rates contributed to the creation of global imbalances, and prompted banks to search for yield which fuelled excessive credit expansion and consequent property price booms, particularly in the US and the UK. The insufficient financial regulation, along with progressing financial innovation (and moving high risks assets to off-balance sheets), encouraged banks to make risky mortgage loans whilst holding too little capital and not enough liquidity.

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