Abstract

Some concerns regarding the level of banking and financial regulation have been recently raised by market participants. Indeed, the intense regulatory activity over the last years might have led to an excessive burden for firms and markets, thus challenging the efficiency of the economic system as a whole. Against this background, public authorities have started carrying out impact assessments of their policies in order to make the process through which the intermediaries are regulated more efficient and transparent. Impact assessments represent a relevant tool for decision-making. Regulators can beneficially rely on their results in order to find a balance between different needs when they establish new rules. This is particularly important in highly complex markets - such as financial ones - where it is crucial to take into account the interests of the different players. The consultation of the relevant stakeholders - intermediaries, customers, associations - guarantees that the process is transparent and that the different policy implications of new rules are adequately taken into account. Also, the realization and publication of impact analyses enhance the accountability of the regulatory authorities and the public trust on the adequacy of their internal decisionmaking process. However, such analyses are usually based on oversimplification and primitive methodologies. In some circumstances, quantitative data are rare and qualitative information insufficient. This calls for judiciousness and caution in interpreting the results of impact assessments. Furthermore, impact assessments might be burdensome and therefore should be carried out using a pragmatic approach; the extent of the analysis is to be chosen having regard to the principle of proportionality.