This paper analyses the interactions between financial regulation and crises with reference to the experience of the United States in the period after the global financial crisis up to the Covid-19 emergency. In the last few years, a new regulatory system for large banks has arisen in the U.S., reversing some elements of the Dodd-Frank Act and introducing deviations from the internationally agreed rules. This approach is also confirmed by some of the measures adopted in response to Covid-19.
The analysis shows that, should the U.S. deregulation trend spread abroad, the globally harmonized approach to regulation could break down. In the current circumstances as well, the international rules must not be breached, as they provide the resilience needed to sustain lending to the economy and to keep banks safe. In the near future, the pressures to dilute the G-20 rules could grow stronger. The importance of maintaining a consistent approach to banking regulation should be emphasized.
