Georgosouli, Andromachi --- "What makes deterrence credible?" [2019] ELECD 1563; in Russo, A. Costanza; Lastra, M. Rosa; Blair, William (eds), "Research Handbook on Law and Ethics in Banking and Finance" (Edward Elgar Publishing, 2019) 302

Book Title: Research Handbook on Law and Ethics in Banking and Finance

Editor(s): Russo, A. Costanza; Lastra, M. Rosa; Blair, William

Publisher: Edward Elgar Publishing

Section: Chapter 13

Section Title: What makes deterrence credible?

Author(s): Georgosouli, Andromachi

Number of pages: 15

Abstract/Description:

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.