scholarly journals The Puzzle

2020 ◽  
pp. 3-33
Author(s):  
Emily Jones
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Case Studies ◽  
Financial System ◽  
International Standards ◽  
Financial Globalization ◽  
International Banking ◽  
Compelling Evidence ◽  
The Core ◽  
Global Financial System

This chapter sets out the puzzle at the heart of this book: why do governments in many developing countries choose to regulate their banks on the basis of international standards they did not design, and which are costly to implement? Country case studies across Africa, Asia, and Latin America provide compelling evidence of the reputational, competitive, and functional incentives generated by financial globalization that lead regulators to adopt international standards. The chapter summarizes the book’s core argument about the channels of regulatory interdependence between countries in the core and periphery of the global financial system, and the conditions under which we find that regulators to converge on, or diverge from, international banking standards.

scholarly journals The Political Economy of Bank Regulation in Developing Countries: Risk and Reputation

2020 ◽  
Keyword(s):  
Developing Countries ◽  
Domestic Politics ◽  
Bank Regulation ◽  
International Standards ◽  
Financial Globalization ◽  
Global Finance ◽  
The Core ◽  
Depth Analysis ◽  
Regulatory Politics ◽  
Global Financial System

Why do governments in some developing countries implement international standards, while others do not? Focusing on the politics of bank regulation, this book develops a new framework to explain regulatory interdependence between countries in the core and the periphery of the global financial system. Drawing on in-depth analysis of eleven countries across Africa, Asia, and Latin America, it shows how financial globalization generates strong reputational and competitive incentives for developing countries to converge on international standards. Regulatory interdependence is generated by relations between regulators, politicians, and banks within developing countries, and international actors including investors, peer regulators, and international financial institutions. We explain why it is that some configurations of domestic politics and forms of integration into global finance generate convergence with international standards, while other configurations lead to divergence. This book contributes to our understanding of the ways in which governments and firms in the core of global finance powerfully shape regulatory politics in the periphery, and the ways in which peripheral governments and firms manoeuvre within the constraints and opportunities created by financial globalization.

scholarly journals IMF COVID-19 Response—A New Short-Term Liquidity Line to Enhance The Adequacy Of The Global Financial Safety Net

Policy Papers ◽  
2020 ◽  
Vol 20 (25) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Emerging Market ◽  
Financial System ◽  
Safety Net ◽  
Short Term ◽  
Key Features ◽  
Global Uncertainty ◽  
Global Financial System ◽  
New Facility ◽  
Financial Safety Net

The COVID-19 pandemic has created severe disruption in the global financial system, with many emerging market and developing countries (EMDCs) facing liquidity shortages. In the context of intensified demand for liquidity and heightened global uncertainty, staff has revisited the 2017 proposal for a new facility to provide liquidity support to the Fund’s membership. This paper proposes the establishment of a new Short-term Liquidity Line (SLL) as a special facility in the General Resources Account (GRA), based on the key features of the 2017 blueprint.

scholarly journals Prospects for the Development of the Russian Payment Infrastructure in the Сontext of the Transformation of the Global Financial System

2018 ◽  
Vol 12 (2) ◽  
pp. 48-57
Author(s):  
P. A. Tamarov
Keyword(s):  
Mutual Influence ◽  
Financial System ◽  
International Standards ◽  
Impact Factors ◽  
Payment Systems ◽  
Factors Affecting ◽  
World Economic ◽  
Quantitative Indicators ◽  
The Impact ◽  
Global Financial System

In the article, the author analyzes the impact of factors affecting the global financial system in the payment sphere. The analysis is based on a comparison of the set of impact factors, as noted in the materials of the World Economic Forum, with trends in the development of payment infrastructure. We show the manifestation of this influence in various aspects and properties, both for separate payment systems, and the payment sphere as a whole.The author notes that not only regulation based on international standards, but also changes in market conditions and technological innovations have a significant impact on the development of payment systems of central banks. The impact of factors in the Russian national payment system (NPS) and the role of the Bank of Russia are revealed.The author concludes that the degree of influence of the factors manifested in the implementation of planned and possible measures for the development of the NPS can be estimated by the dynamics of growth (deviation) of the share of payment traffic carried out in significant payment infrastructures. Quantitative indicators of the NPS development, presented in terms of factors and related activities affecting the global financial system, make it possible to assess the degree of mutual influence. 

Financial Globalization and Limitations of National Monetary Policy

2007 ◽  
pp. 20-34 ◽  
Author(s):  
M. Golovnin
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
National Economy ◽  
Inflation Targeting ◽  
Financial System ◽  
Financial Globalization ◽  
Quantitative Indicators

The article studies financial globalization’ influence on monetary policy. It considers quantitative indicators and qualitative tendencies of financial globalization. The paper outlines the main directions of financial globalization’ impact on national monetary policy and analyzes the developed and developing countries experience in searching answers to challenges of financial globalization. Special attention is paid to inflation targeting framework. Current problems of monetary policy in Russia due to increasing external openness of national economy and financial system and their possible solutions are put forward.

scholarly journals Evolución e impacto de la regulación bancaria internacional hasta Basilea III: el caso de América Latina = Evolution and impact of international banking regulation until Basel III: The case of Latin America

2013 ◽  
pp. 147
Author(s):  
Cristina Gutiérrez López
Keyword(s):  
Latin America ◽  
Financial Crisis ◽  
Latin American ◽  
Financial System ◽  
Banking Regulation ◽  
Basel Ii ◽  
Basel Iii ◽  
International Banking ◽  
Basel Accords ◽  
America Latina

<p>La crisis financiera ha cuestionado la efectividad de los Acuerdos de Basilea como herramienta de regulación y supervisión bancaria a nivel internacional, especialmente por la coincidencia temporal de Basilea II y los problemas del sector bancario. En el caso de América Latina, esto se une tanto a las particularidades de su sistema financiero, que ha afrontado reformas muy significativas en los últimos años, como a la forma diferencial en que la crisis financiera se ha manifestado.<br />El artículo revisa las características del esquema de regulación bancaria internacional hasta llegar al nuevo Acuerdo de Basilea III y su previsible adaptación al caso latinoamericano, con especial interés sobre los efectos en la financiación y prociclicidad.</p><p>The financial crisis has questioned Basel Accords effectiveness as regulatory and supervisory tools in the international banking area, especially because Basel II was firstly applied when banking problems started. In the Latin America case, this happens in a particular financial system, which has suffered significant reforms over the last years, and where the financial crisis has behaved in a different way.<br />The paper analyses the main characteristics of the international banking regulatory framework until current Basel III Accord. It also addresses its foreseeable adaptation to the Latin American context, with special emphasis on funding and pro-cyclicality</p>

scholarly journals The Challenges International Banking Standards Pose for Peripheral Developing Countries

2020 ◽  
pp. 34-67
Author(s):  
Emily Jones
Keyword(s):  
Developing Countries ◽  
Standard Setting ◽  
International Standards ◽  
International Banking ◽  
Policy Decisions ◽  
Middle Income ◽  
Middle Income Countries ◽  
Basel Committee ◽  
Cross Country ◽  
High Level

The aim of this chapter is to provide readers with a solid grasp of the regulatory context in peripheral developing countries, and an understanding of the Basel framework, so that they can better understand the magnitude of the policy decisions that regulators in peripheral countries are taking when they decide whether, and to what extent, to harmonize their national regulations with international standards. It explains how the context for regulating banks in peripheral developing countries differs from that in the advanced countries that dominate international standard-setting bodies. It reviews the evidence on the appropriateness of international standards for regulating banks in peripheral developing countries, particularly low- and lower-middle income countries, and highlights the challenges that international standards pose. The chapter reviews the cross-country evidence that we have to date on the implementation of international banking standards in countries outside of the Basel Committee. The data reveals a high level of variation in the adoption of international standards across countries including among low- and lower-middle-income countries.

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