The International Banking Crisis and the Role of the Financial Supervision and Financial Innovations

The latest international financial crisis that started in the US real estate market has shaken the confidence in the capacity of the modern banking and financial system to function and to withstand crises. In the light of this massive system failure, the conviction is becoming widespread in academia and politics that the role of financial innovations and of the regulatory framework for banking and of the policy foundations of the financial supervision should be fundamentally revised.