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 new project, led by Emily Jones, Ngaire Woods and Thorsten Beck, is leading a multidisciplinary team of researchers looking at how political institutions and processes - at both the domestic and global levels - shape the impact of global banking initiatives on low income countries and their ability to harness financial flows for inclusive growth.
The research generated through this project will not only make a significant academic contribution but also provide crucial evidence and insights for policymakers in low income countries as well as global financial standard-setting institutions. As a well-regulated financial sector can promote inclusive growth by generating access to credit for SMEs and marginalised groups, this project has far-reaching implications for development in low income countries.
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 team includes researchers from academic institutions in Burkina Faso, Kenya, and Vietnam, coordinated through GEG. In-depth case studies on countries in South East Asia, South America, West Africa and East Africa will form part of the project’s research output.