7: Reform or repression: The political constraints to effective banking reform

Charles Calomiris interviewed by Viv Davies, 28 January 2013Charles Calomiris talks to Viv Davies about what he sees as a pervasive change in the politics of banking that has enabled banking regulators and supervisors to pursue bad practices. Calomiris maintains that the keys to effective prudential regulatory reform are, first, to recognise the core incentive problems that encourage risk-taking and ineffective regulation, and second, to design simple reforms that are 'incentive-robust', for which a political coalition of support will be required. The interview was recorded by phone on 24 January 2013.