regulatory climate


Also found in: Dictionary, Thesaurus.

Regulatory Climate

A legal situation describing the extent to which government regulations enhance or impede earnings growth. The term is used most often in the utilities industry, which must receive government approval for increases in the prices of its products. Generally speaking, the business world favors a regulatory climate with as little government oversight as possible, as this usually enables higher profits. Critics allege, however, that this sort of regulatory climate encourages unsustainable growth and/or harms the poorer segments of society. See also: Deregulation.

regulatory climate

The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. A favorable regulatory climate generally causes investors to value a company more highly because they expect its earnings to be greater.
References in periodicals archive ?
The regulatory climate should be conditioned according to market needs and to incentivise economic growth." Makiya adds that increasing taxes and spectrum fees only make it more difficult for the telcos to reduce service costs to the public.
Such environments depend on a variety of factors - a strong education system, sound infrastructure, the regulatory climate, the quality of the work force and the level of business taxation.
"Given the challenging regulatory climate, we are extremely pleased to obtain clearance, and we are eager to introduce, market and sell the first of many cages of what will ultimately be a portfolio of interbody fusion systems," Joseph Jin, Medyssey's vice president of sales for the Americas, said.
Foreign direct investment in India plunged in the past year amid investor concern over widespread corruption, bureaucratic delays, a lack of economic reform and an uncertain regulatory climate.
The book looks the development of radio in Canada and elsewhere, and shows how the regulatory climate for broadcasters created the need for pirate stations.
Earlier in the year, National Grid said the regulatory climate in New Hampshire was "not conducive" to the climate expected by its customers and shareholders, said David Graves, a spokesman for National Grid.
The American Council of Life Insurers heads to the windy city as its members continue to deal with a rapidly changing regulatory climate. Get the latest insider information from speakers such as Roger Ferguson, Jr., president and CEO of TIAA-CREF, Sheila Bair, chair of the FDIC, and media types including Stuart Rothenberg and commentator Bill Press.
But bank watchers wonder if the current regulatory climate is a deal-killer in an environment that seems to favor thinning the herd of lenders.
"We've got to have a fiscal and a regulatory climate that encourages all of that investment because, quite simply, it will go elsewhere if there's not confidence in the UK market.
SMALL firms on Teesside have condemned the regulatory climate as a drain on resources, as lobbyists gather in Europe.
He says he leaves NAVA in a strong position because of improvements in its public relations program and in the regulatory climate for the industry.
The newly amended regulations, which took effect January 1 this year, are part of the ongoing effort by the financial regulatory authority to continually improve Korea's investment and regulatory climate for foreign investors.
Full browser ?