Lack of effective institutions to regulate international financial markets has meant that an ever-growing shadow banking sector has become a true menace for global financial stability and, in the long run, for the viability of open global markets. Yet this need not have been the case and it is largely the fault of governments who have implemented region- or ethno-centric and timid reforms of the financial sector. Emilios Avgouleas argues that, in spite strong regional and national resistance, establishment of new International institutions as part of an effective governance model for global finance could lead to effective controls on the shadow banking sector, averting a return to financial protectionism. At the same time, a strong governance system for global financial markets could effectively steer international finance towards welfare enhancing goals.
Emilios Avgouleas is the holder of the International Banking Law and Finance chair at the University of Edinburgh. He is also a qualified lawyer with many years of practice in the field of global markets. As an academic he is an acknowledged expert on financial market regulation, banking law and finance, and global economic governance. Emilios has published extensively in the wider field of International and European finance law and economics and behavioral finance. He is the author of a large number of scholarly articles and of two monographs: Governance of Global Financial Markets: The Law, the Economics, the Politics (CUP, 2012); The Mechanics and Regulation of Market Abuse: A Legal and Economic Analysis (OUP, 2005).