Navigating Global Banking Standards
How do developing countries navigate global banking standards?
In the wake of the global financial crisis, industrialised countries have agreed a series of regulatory reforms to repair and regulate their own financial systems. All countries, including low income ones, are encouraged to adopt these new global banking standards. Yet there has been very little research on how these new standards will impact low income countries, whose financial systems are very different from those in advanced and emerging economies.
GEG’s flagship project, led by Emily Jones, Ngaire Woods and Thorsten Beck, features a multidisciplinary team of researchers from three continents that look at how political institutions and processes - at both the domestic and global levels - shape the impact of global banking standards on low income countries and their ability to harness financial flows for inclusive growth.
The research project identifies key stakeholders and their incentives to adopt Basel II and III in a mixed methods approach that combines statistical analysis and in-depth case studies of 11 jurisdictions on 3 continents. Furthermore, the research team analyzes the particular benefits and costs of Basel standards adoption in developing countries and distills policy implications for global standard setters and regulators in the financial periphery. You can find an interactive summary of this project here.