On the positive side, we have broad agreement on higher quality capital and liquidity standards with appropriate phase in arrangements. But substantial gaps remain and must be addressed through international cooperation in order to avoid regulatory arbitrage.

Le Centre libanais de l apos arbitrage adopte le règlement d apos arbitrage de la CNUDCI.

I did comic book arbitrage.

I call this environmental arbitrage.

Likewise, the Chinese government must address a fundamental contradiction. Monetary interest rates have increased steadily, owing to rampant regulatory arbitrage (whereby banks find loopholes that enable them to avoid unfavorable rules) and the fragmentation of the credit market, while return on capital has fallen rapidly because of overcapacity.

Financial re regulation should and will emphasize capital, reserve, and margin requirements limiting systemic risk buildup by constraining leverage eliminating fragmented and incomplete regulatory coverage and regulatory arbitrage (a huge challenge internationally) and a focus on transparency. Isolating and further constraining a portion of the banking system, so that the channels of credit intermediation are less prone to complete and simultaneous breakdown, also seems likely.

But, in others, it is regarded as a minimum to which additional rules may be added. Such super equivalence or, more colloquially, gold plating creates inconsistencies across jurisdictions, thereby facilitating regulatory arbitrage.

Borrowers and lenders can resort to cross border financial flows to evade domestic controls and erode the integrity of regulatory standards at home. To prevent such regulatory arbitrage, domestic regulators may be forced to take measures against financial transactions originating from jurisdictions with more lax regulations.

A good regulatory framework, including enforcement measures, needs to be established in order to develop a capital market.

(a) Promote an economic and regulatory climate that is conducive to inward remittances and to capital inflows, in general.

Basel II also recommends a new, more differentiated and stricter regulatory capital criterion for various types of such ratings.

Subsequently, the arbitrage award established Brčko District of Bosnia and Herzegovina.

They stressed that a sound regulatory framework had to be in place to complement the opening of a capital account.

The obstacles to be overcome related to non availability of capital and expertise, regulatory constraints and inadequacies in telecommunication and information systems technology.

Bulletin ASA Association suisse de l apos arbitrage (Bâle) 14 4 609 610, 1996.

The problem is that none of globalization s underlying weaknesses is likely to be adequately addressed under the current agenda. Financial regulation and supervision will surely be strengthened, but they will remain national in character, with little safeguard against cross border spillover and regulatory arbitrage.

First, thanks to an effective albeit porous capital control regime in China, short term hot money (capital coming into China aimed at arbitrage, rent seeking, and speculation) could not enter (and then leave) freely and swiftly. Second, short term capital flows usually would strengthen rather than weaken upward pressure on the RMB s exchange rate, because speculators, persuaded by China s gradual approach to revaluation, bet on appreciation.

Owing to its underdeveloped financial system and inefficient capital markets, China would be unable to withstand an attack akin to those that triggered the Asian financial crisis without the protection of capital controls. Already, even without a major speculative attack, the exchange rate and interest rate arbitrage facilitated by renminbi internationalization have imposed significant losses on China.

Governments had some role to play in such matching exercises, particularly by providing a predictable regulatory environment, access to international capital markets, and the appropriate infrastructure.

In the early 2000s, short term capital began to flow into China, with investors betting on the renminbi s appreciation and, from 2004 2006, on rising asset prices. Since renminbi internationalization was launched in 2009, exchange rate arbitrage and the carry trade have surged.

Moreover, if financial institutions follow their own risk assessments when estimating appropriate capital cushions, the costs associated with such provisions decline. Better repayment prospects and lower regulatory capital costs then fuel the asset based financing of further acquisition of assets.

Capital buffers to absorb losses during the downturn of the cycle can be more easily built during the upswing. Furthermore, by raising regulatory capital costs in boom times, some counterweight to the pro cyclical bias intrinsic to financial systems would be introduced.

Regulatory issues

Regulatory action

Overvalued exchange rates, in turn, have attracted more inflows by adding to arbitrage margins created by high interest rates.

Other regulatory controls

Disabling regulatory policies.

C. Regulatory environment

1. Regulatory activities

They pounced on the opportunity to make profits and arbitrage on the difference by ordering 760 and 330 printers respectively.

Some of these affect directly the supply of such services, such as the general unavailability of financial capital or insurance capacity or regulatory constraints or State monopolies of certain financial products.

14. Invites the International Monetary Fund to facilitate the dialogue among relevant actors to consider the possibility of establishing a regulatory framework for short term capital flows and trade in currencies

Institutional challenges such as capital controls, regulatory burden, problems in accessing foreign exchange and the lack of institutional infrastructure for OFDI support services are factors that have restricted developing country firms' internationalization.

There had been a wave of privatizations, unconditional opening to foreign markets, elimination of restrictions on the movement of capital and abolition of the regulatory powers of the State in the economy.

China Insurance Regulatory Commission

China Securities Regulatory Commission

Legal and regulatory environment3

Regulatory and control framework

A. General regulatory considerations

Supervisory and regulatory arrangements

20. Reiterates its invitation to the International Monetary Fund to facilitate the dialogue among relevant actors to consider the possibility of establishing regulatory frameworks for short term capital flows and trade in currencies

On the tradable side, competitiveness depends not only on human capital, but also on a host of other factors infrastructure, tax systems, regulatory efficiency, policy induced uncertainty, and energy and health care costs.

Fourth, regulatory structures will need to be rebuilt, and this will require a global effort. Absent international coordination, the opportunities for destructive regulatory competition will defeat regulatory reform.

The Harm of Regulatory Disharmony

Franchising poses particular regulatory challenges.