TAILIEUCHUNG - BIS Papers No 62 Financial sector regulation for growth, equity and stability

Social Security payments and DB pension plans have traditionally provided the bulk of retirement income in the United States. For example, the . Social Security Administration reports that 44 percent of income for people 65 and older came from Social Security income in 2001 and 25 percent came from DB pensions. As Figure shows, according to Employee Benefit Research Institute reports, current retirees (see Panel B) receive almost 70 percent of their retirement income from Social Security and traditional company pension plans whereas today’s workers (see Panel A) can expect to have only about one-third of their retirement income funded by these sources (see GAO 2003; EBRI. | BANK FOR INTERNATIONAL SETTLEMENTS BIS Papers No 62 Financial sector regulation for growth equity and stability Proceedings of a conference organised by the BIS and cAfRAL in Mumbai 15-16 November 2011 Monetary and Economic Department January 2012 xVc A FRAL sJa CENTRE FOR ADVANCED FINANCIAL f s RESEARCH AND LEARNING Promoted by Reserve Bank of India Papers in this volume were prepared for a conference organised by the BIS and the Centre for Advanced Financial Research and Learning CAFRAL in Mumbai on 15-16 November 2011. The views expressed are those of the authors and do not necessarily reflect the views of the BIS or the institutions represented at the meeting. Individual papers or excerpts thereof may be reproduced or translated with the authorisation of the authors concerned. This publication is available on the BIS website and the CAFRAL website . Bank for International Settlements and CAFRAL 2012. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1609-0381 print ISBN 92-9131-088-3 print ISSN 1682-7651 online ISBN 92-9197-088-3 online Preface The failure of regulation and the short-sightedness of the private sector were the root causes of the crisis. The balance of emphasis has shifted from encouraging innovation designed to yield short-term gains for a few to ensuring sustainable financial sector development that helps many. How can we make this new orientation operational What does this enhanced regulation mean for growth and for equity Are the implications of regulatory reforms different for emerging market economies EMEs whose growth momentum was dented by the crisis In tailoring regulatory reforms how can we harmonise the interests of the advanced and emerging economies Addressing these questions was the main thrust of CAFRAL s inaugural international conference organised jointly with BIS on Financial Sector Regulation for Growth Equity and Stability in the Post Crisis .

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