Able Quote by Robert F. Engle
“I think we're fooling ourselves if we think that regulators are going to be able to outsmart the bankers. So, the task of designing regulatory reform is trying to make more or less foolproof regulation and that's one of the advantages of the systemic category.”
About This Quote
Source Speech: Financial Regulation Forum, 2023
Regulators cannot outwit banks; designing robust, systemic rules is essential to limit banking excesses.
In simple terms: Regulators are outsmarted by banks, so rules must be strong and systemic.
Key Takeaway
Focus on systemic safeguards rather than chasing clever loopholes.
Themes
regulation
banking
systemic risk
policy
oversight
Mood
cautious
analytical
determined
Type
policy
analytical
pragmatic
When to use this quote
- policy drafting
- bank compliance
- risk assessment
- legislative hearings
- financial oversight
Key Concepts
systemic design
risk management
financial stability
Questions to Reflect On
- What systemic safeguards are most effective?
- How can oversight keep pace with banking innovation?
A Different Perspective
Regulators may lack resources to enforce complex rules.
