Research Handbook on Law and Ethics in Banking and Finance
Show Less

Research Handbook on Law and Ethics in Banking and Finance

Edited by Costanza A. Russo, Rosa M. Lastra and William Blair

The global financial crisis evidenced the corrosive effects of unethical behaviour upon the banking industry. The recurrence of misbehaviour in the financial sector, including fraud and manipulations of market indices, suggests the need to establish a banking culture that conforms to the highest standards of ethical and professional behaviour. This Research Handbook on Law and Ethics in Banking and Finance focuses on the role that law should play and the effectiveness of newly introduced regulations and supervisory actions as a driver for ethical conduct so as to reconnect the interests of bankers and financiers with the interests of society.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 13: What makes deterrence credible?

Andromachi Georgosouli


According to current orthodoxy, deterrence is credible when it is visible and visibility calls for enforcement action that is harsh enough to be taken seriously by the industry. In this chapter, it is argued that the focus on enforcement is misplaced because, when it comes to the question of credibility, at best it tells half the story. The credibility of deterrence is contingent to a multitude of factors. This chapter considers three of them all of which are closely inter-related: The regulator’s capacity to attain a congruence of minds and a congruence of hearts with the regulatees, and the regulator’s ability to harness its profile as a credible enforcer.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.