1. Post-crisis reforms in banking: Regulators at the interface between domestic and international governance
- Author
-
Aneta Spendzharova and Lucia Quaglia
- Subjects
Public Administration ,Sociology and Political Science ,Corporate governance ,International standard ,05 social sciences ,International economics ,050601 international relations ,0506 political science ,Market liquidity ,Capital (economics) ,050602 political science & public administration ,Economics ,media_common.cataloged_instance ,Pacesetters ,European union ,Law ,Legitimacy ,Externality ,media_common - 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.
- Published
- 2017