In relation to the financial market, legislative and prudential alignment at the level of the EMU, the EU or, more rarely, globally. – Since around 2013, there has been a trend toward maximum harmonization in the area of supervisory harmonization in the interest of uniformity of regulations on the financial market: the member states are firmly bound by the regulations. Until then, minimal harmonization prevailed. Individual states were not allowed to go below the regulations, but they were allowed to go beyond them. This created submarkets with sometimes laxer, sometimes stricter regulation, which demonstrably invited regulatory arbitrage. – See supervisory avoidance, fragmentation, prudential, regulatory equality, subsidiarity principle. – Cf. BaFin Annual Report 2013, p. 166 (maximum harmonization as a principle [why maximum harmonization is a “concept” is probably known only to the well-paid report writers]).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/