Les services financiers : Politique des pouvoirs publics et concurrence internationale

Abstract

Openness or Protectionism ? Three interrelated developments are currently at work which will affect profoundly the future evolution of the financial services industry: the marketisation of finance; the securitisation of financial intermediation; and the globalisation of markets. Against this background, the viability of individual institutions will depend on two basic elements: the capacity to keep abreast of innovations and market developments and the capacity to respond quickly and efficiently to the changing requirements of customers. It is with regard to this latter factor that the attitude of authorities towards the general issue of competitive equality, both domestically and internationally, will prove of crucial importance in determining the actual degree of competitiveness of the various groups of financial institutions in the global market. In this context, the paper considers briefly three major policy issues that have acquired growing prominence in international discussions in recent years: deregulation and reregulation; levelling the playing field; and the desirability of international rules of the game. The broad interpenetration of markets worldwide and consideration relating to the international competitiveness of national financial structures militate strongly in favour of further deregulation of financial markets. But the process of reregulation of institutions - mainly, but not exclusively, from the point of view of prudential supervision - is a necessary condition for preserving the safety and soundness of institutions operating in the more competitive financial environment. There is a broad consensus about the desirability of policies which would reduce the existing heterogeneity of institutional arrangements and regulatory standards across the world. But the prospects for a move towards greater compatibility of such arrangements and standards seem to be rather mixed. Indeed, the risk exists that the growing intermingling of instruments and intermediaries may exacerbate competitive inequalities and make more difficult the adoption of a global policy approach towards financial system management. The de facto integration of financial markets needs to be accompanied by the establishment of internationally acceptable ground rules for strengthening the foundations of a liberal trading system in financial services and for establishing a solid framework for international cooperation in this area. Broadly-based action in this field is indispensable in order to limit the risks of the re- emergence of protectionist attitudes, which would reduce the overall efficiency of the global financial system as well as lead to further distortions and incompatibilities between institutional arrangements and market realities.