Post-crisis Reforms in Banking: Regulators at the Interface between Domestic and International Governance

Lucia Quaglia, Aneta Spendzharova

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Post-crisis international standards have been agreed on in certain areas of banking regulation, namely capital, liquidity, and resolution, but not others, namely bank structure – why? We articulate a two-step analytical framework that links the domestic and international levels of governance. In particular, we focus on the role of domestic regulators at the interface between the two levels. At the domestic level, regulators evaluate externalities and adjustment costs before engaging in cooperation at the international level. This analysis explains why regulators in the United States and the European Union act as pacesetters, foot-draggers, or fence-sitters in international standard setting; that is to say, why they promote, resist, or are neutral toward international financial standards. At the international level, we explain the outcome of international standard setting by considering the interaction of pacesetters and foot-draggers.
Original languageEnglish
Pages (from-to)422-437
Number of pages16
JournalRegulation & Governance
Volume11
Issue number4
DOIs
Publication statusPublished - Dec 2017

Keywords

  • ACCOUNTING STANDARDS
  • CRISIS
  • GLOBAL FINANCIAL GOVERNANCE
  • INSTITUTIONS
  • LEGITIMACY
  • POLICY
  • POLITICAL-ECONOMY
  • POWER
  • RULES
  • STATE
  • banking regulation
  • governance of finance
  • international standard
  • post-crisis reform
  • regulator

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