Regulatory arbitrage

1. Regulation.

Where a regulated institution takes advantage of the difference between its real (or economic) risk and the regulatory position.

2. Regulation - cross border arrangements.

Where an organisation - usually cross-border - takes advantage of differences in the regulation of the same or similar items in different jurisdictions.

See also

• Arbitrage
• Bank supervision
• Harmonisation
• Jurisdiction
• Regulation
• Tax arbitrage