The risk of a systemic crisis and the inability of depositors to monitor
how banks are governed are long-standing public policy concerns. Since
joining Bangor University in 2008 Professor Klaus Schaeck and
collaborators from central banks and international financial organisations
have worked to inform the global policy debate on these issues.
Specifically, how varying competitive conditions, corporate governance
structures and regulatory innovations incentivise the development of safer
and sounder banking systems. Notable impacts of Schaeck's research since
2008 include: the use by central banks of his new methodology to gauge
banking sector competition; priority change in the policy debate over the
structure of bank boards and, in particular, the influence of female
executives; and finally heightened policy awareness of the unintended
consequences of regulations imposed on troubled or bailed-out banks.
Since the 1980s, there has been a wave of global activity seeking
improved control of money laundering and confiscation of crime proceeds.
This set of research studies, based around the work of Professor Mike
Levi, constitutes core empirical analysis of the scale of financial
crimes, and what can be properly said about the impacts of social
and formal control measures against them. The studies have informed and
helped to shape the fraud, money laundering and organised crime strategies
of the UK Home Office, UK enforcement agencies, and international bodies
such as the EC Justice and Home Affairs and IMF post-2008.
This research has influenced a shift in the international framework for
tackling the proceeds of
crime. It helped to move state practice away from a focus on formal
compliance with the
international rules to an emphasis on effectiveness and enforcement.
Gilmore's monographs on
Dirty Money (1995-2004) and appointments with the Council of Europe
(CoE) — the body charged
with coordinating government responses to money laundering — established a
direct conduit for
the uptake of research by transnational regulators. States regulated
through CoE standards now
focus intensively on confiscation of the proceeds of crime rather than on
formal criminalisation of
Loughborough University research into financial regulation has had a
significant and enduring influence on how regulatory bodies are structured
and how they use economic analysis. This work has been credited with
shaping the groundbreaking culture and methodology of financial regulation
in the UK with respect to consumer protection, recognising the special
characteristics of retail financial products and contracts and applying
cost-benefit and regulatory impact analysis in decision-making processes.
It has also played a major role in redefining financial regulatory
structure in the UK and South Africa. In addition, the research is now
being used to help develop and guide approaches to ensuring high standards
of bank regulation and consumer protection across the EU through the
European Banking Authority's Banking Stakeholder Group.
An AHRC and ESRC-funded Edinburgh research collaboration with the
Argentinian Ministry of Science, Technology and Innovative Production
(MOST), from 2007-2012, served as a key driver in the formation of
regulatory structures, norms, knowledge and social understanding, helping
to overcome state non-intervention in the regulation of regenerative
medicine. As a direct result of engagement with the stakeholders in
law/policy, medical and scientific communities, the research exposed a
strong appetite for top-down legal intervention. This culminated in the
first-ever model law presented by the MOST to the Argentine legislature
(Congress) in 2013.