What Can the Concept of ‘Public Value’ Contribute to Financial Regulation?

Abstract

The purposes of financial regulation have traditionally been related to correcting market failure and maximizing market efficiency. This approach to public policy has been challenged by an approach that focuses on maximising public value rather than solely correcting market. This article identifies that significant problems with the orthodox approach to financial regulation and sets out how the concept of public value could provide a useful conceptual framework for the design and assessment of financial regulation. The article also looks at practical examples of how the concept of public value could be applied to financial regulation.