Date: 13th November 2017
There is nothing like the aftermath of a double financial crisis to motivate stakeholders to rethink models, concepts and strategies in investments, especially when there are signs that the next crisis could very well be triggered by the finance industry itself.
Dark clouds are building up on the horizon, indicative of the excessive risks taken by private financial institutions in an environment that does not promise the appropriate economic growth.
The EU regulators have not stood still, however. In a Single Market that did not conceive, by default, the concept of financial crisis (simply because the Maastricht Treaty – along with the subsequent reforms, Amsterdam, Nice and Lisbon – laid down the foundations of the EMU, but not a single provision on crisis resolution), the EU Institutions have attempted to put an adequate financial regulatory and supervisory framework in place. Whereas much can still be done to improve this framework, the thorough revision of EU financial regulations has put in place an EU safety net, even though this won’t prevent another crisis,.
But, instead of fixing problems, why not prevent them? Some key players are advising for more sound strategies in banking and investments with advocates calling for evidence-based investing, Robo-consulting or sustainable finance…Yet others propose to ‘think long-term in order to deal with short-term challenges’.