Navigating global banking standards
In the wake of the global financial crisis, industrialised countries have agreed on a series of regulatory reforms to repair and regulate their own financial systems.
All countries, including low-income countries, are encouraged to adopt these new global standards. Members of the G20 have asked the Financial Stability Board, IMF and World Bank to study how global banking initiatives will impact developing and emerging economies, identifying this area as a key policy concern for promoting inclusive growth.
To date, the scant research on this question addresses almost exclusively emerging market economies. LIC governments and advisers have voiced an urgent need for LIC-specific analysis.
This project will be amongst the very first to look at how political institutions and processes – at both the domestic and global levels – shape the impact of global banking initiatives on LICs and their ability to harness financial flows for inclusive growth. The core research questions are:
- How much de facto flexibility do LICs have in respect of the new regulatory standards, how much do they need, and under what conditions (economic and political; global, regional and national) should they adopt new regulatory standards?
- What strategies for influencing global standard-setting processes and institutions are likely to yield the best outcomes for LICs?
The project combines two disciplinary approaches: political science and economics. It combines quantitative and qualitative analysis, and will generate new datasets.
The first two years of the project (2015-2016) are devoted to developing the project’s framework, conducting research and assembling findings. In the third year (2017), policy-makers will be invited to discuss the findings and their implications for global banking regulations and low-income country strategies.
The Political Economy of Bank Regulation in Developing Countries: Risk and Reputation
Global Financial Regulation: Shortcomings and Reform Options
Regulatory Convergence in the Financial Periphery: How Interdependence Shapes Regulators’ Decisions
International finance: even more global than we realised
Basel standards and developing countries: A difficult relationship
Mind the Gap: Making Basel Standards Work for Developing Countries
Room to Manoeuvre: How Developing Countries Can Tailor Basel Standard