Global administrative law: The Basel Committee revisited

Law Making

<p>Global Administrative Law is the branch of Global Governance that seeks to provide guidance and structures for decision‐making bodies and international organisations that rely on co‐operation between a range of international actors to achieve various objectives or implement policy agendas. In 2006, Michael S. Barr and Geoffrey P. Miller critically analysed the Basel Committee on Banking Supervision. Their article Global Administrative Law: The View from Basel sought to dispel the critiques that international‐law making processes lacked democratic accountability and oversight by offering the Basel Committee’s own processes as a model for international law‐making with greater accountability and legitimacy. This article examines the Basel Committee since Barr and Miller’s 2006 article, in light of the global financial crisis and the development of ‘Basel III’. It will seek to determine whether the processes described by Barr and Miller proved to be effective, and if Global Administrative Legal theory is appropriately applied to the Basel Committee. Finally, the article will ask whether the Basel Committee still serves as a model for international law‐making with greater accountability and legitimacy, or if more work is needed to fulfill this model.</p>

Global administrative law: The Basel Committee revisited

10.26686/wgtn.17012576 ◽

2021 ◽

Author(s):

◽

James Gallagher

Keyword(s):

International Law ◽

Global Financial Crisis ◽

Legal Theory ◽

Administrative Law ◽

Democratic Accountability ◽

Banking Supervision ◽

Basel Committee ◽

Policy Agendas ◽

Law Making

Bank Stability Measures in Dual Banking System: A Critical Review

ADVANCES IN BUSINESS RESEARCH INTERNATIONAL JOURNAL ◽

10.24191/abrij.v5i2.9992 ◽

2019 ◽

Vol 5 (2) ◽

pp. 59

Author(s):

Norzitah Abdul Karim ◽

Amirul Afiff Muhamat ◽

Azreen Roslan ◽

Sharifah Faigah Syed Alwi ◽

Mohamad Nizam Jaafar

Keyword(s):

Global Financial Crisis ◽

Financial Institution ◽

Banking System ◽

Banking Supervision ◽

Basel Committee ◽

System A ◽

Overall Stability ◽

Regulatory Bodies ◽

Banking Stability ◽

Definition Of

The 2007-2009 Global Financial Crisis showed that despite reported as ‘healthy’ financial institution prior to crisis had indeed suffered many problems including liquidity during the crisis. Thus, there is confusion on the healthy financial institutions, leading to loss of confidence on the overall stability of the banking system. Thus, there is an urgent need to review the current measures of financial as well as banking stability. This paper aims to look at the definition of ‘stability’ used in the academic researches and by different regulatory bodies, like International Monetary Fund, Basel Committee for Banking Supervision (BCBS) and central banks in selected countries with dual banking systems. It is then, critically review indicators used as measures of financial as well as banking stability. This review is hope to identify areas of strengths as well as weaknesses of the current measures of stability and serves as foundation for further research in future.

Regolazione internazionale e responsabilitŕ globale delle imprese transnazionali

DIRITTI UMANI E DIRITTO INTERNAZIONALE ◽

10.3280/dudi2009-002001 ◽

2009 ◽

pp. 229-258

Author(s):

Fabrizio Marrella

Keyword(s):

Human Rights ◽

International Law ◽

Global Financial Crisis ◽

Holistic Approach ◽

Transnational Corporations ◽

Legal Framework ◽

Global Scale ◽

State Control ◽

Business And Human Rights ◽

- In recent years and before the global financial crisis, international law has struggled to regulate the activity of transnational corporations since the latter have greatly expanded their capacity for action on a global scale. Despite numerous efforts by the International Community to agree on a hard law international legal framework, the soft law process has been the primary arena for the regulation of transnational corporations and human rights. In addition, host state control, home state control and international responsibility of directors and companies itself have so far remained the fundamental avenues through which issues of global corporate responsibility have been assessed. ‘Contractualisation' of human rights has also been viewed as a further avenue to control the human rights impact of corporate activity. The UN Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises has generated an impressive stock of report capitalizing on issues well known in specialised international economic law literature. He is raising global awareness and institutionalizing new paradigms of understanding the complex relationship between business and human rights: a matter of vital importance for this century. The work of the UN Special Representative constitutes therefore a step forward towards an holistic approach of contemporary international law.

Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

Banks and Bank Systems ◽

10.21511/bbs.14(4).2019.03 ◽

2019 ◽

Vol 14 (4) ◽

pp. 22-33

Author(s):

Lyubov Khudoliy ◽

Oleg Bronin

Keyword(s):

Systematic Approach ◽

Banking Sector ◽

Global Financial Crisis ◽

Banking System ◽

Basel Iii ◽

Banking Supervision ◽

Macroeconomic Shocks ◽

Bank Supervision ◽

Banking Institutions ◽

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

The Future of Cross-Border Insolvency

10.1093/oso/9780198782896.001.0001 ◽

2018 ◽

Cited By ~ 4

Author(s):

Irit Mevorach

Keyword(s):

International Law ◽

Financial Institutions ◽

Multinational Enterprises ◽

Global Financial Crisis ◽

Cross Border ◽

The Future ◽

Global Welfare ◽

The Right ◽

The Impact

This book interrogates the current cross-border insolvency regime and sets out a pattern to improve its future. In recent decades, and especially since the global financial crisis, a number of important initiatives have focused on developing effective solutions for managing the insolvency of multinational enterprises and financial institutions. This book takes stock of the varying success of previous policy, and identifies the gaps and biases that could be bridged by employing a range of strategies. The book first sets out the theoretical debates regarding cross-border insolvency and surveys the strengths and weaknesses of the prevailing method, ‘modified universalism’, synthesizing divergences into a rubric for both commercial entities and financial institutions. Adhering to these norms more robustly, the book argues, would enhance global welfare and produce the best outcomes for businesses and institutions. Drawing upon sources from international law as well as behavioural and economic theory, the book considers how to translate modified universalism into binding international law, how to choose the right instrument for cross-border insolvency, the impact instrument design has on decisions and choices, and the means to encourage compliance. In particular, the book proposes measures that could potentially overcome, or at least take into account, behavioural biases in decision-making in order to create a system that works for businesses, and offers a blueprint for the future of cross-border insolvency.

8. Micro-prudential regulation I

Banking Law and Regulation ◽

10.1093/he/9780198784722.003.0008 ◽

2019 ◽

pp. 329-406

Author(s):

Iris H-Y Chiu ◽

Joanna Wilson

Keyword(s):

Financial Crisis ◽

Risk Taking ◽

Global Financial Crisis ◽

Basel Ii ◽

Capital Adequacy ◽

Basel Iii ◽

Prudential Regulation ◽

Basel Committee ◽

Capital Adequacy Regulation

This chapter studies capital adequacy regulation, which prescribes that banks can only take certain levels of risk that are supported by adequate levels of capital. In this way, capital adequacy rules provide a form of assurance that banks with adequate levels of capital are likely able to withstand losses that may result from their risk-taking. The Basel Committee developed its first set of capital adequacy standards in the Basel I Capital Accord of 1988. It was subsequently overhauled into the Basel II Capital Accord in 2003. After the global financial crisis of 2007–9, the Basel II Accord’s shortcomings were extensively discussed and the Basel Committee introduced a package of reforms in order to plug the gaps in Basel II. The Basel III package is the most extensive suite of micro-prudential regulation reforms seen to date, as they deal with capital adequacy and a range of other micro-prudential standards.

Bank of Russia and bank supervision: Together forever?

Voprosy Ekonomiki ◽

10.32609/0042-8736-2019-10-85-98 ◽

2019 ◽

pp. 85-98 ◽

Cited By ~ 2

Author(s):

Oleg V. Buklemishev ◽

Dmitriy O. Vatolin

Keyword(s):

Financial Markets ◽

Global Financial Crisis ◽

Banking Regulation ◽

Banking Supervision ◽

Bank Supervision ◽

Macroprudential Policies ◽

The Status ◽

Phase Out ◽

The Impact

The paper discusses the feasibility of institutional changes in the Russian banking regulation (supervision). The historical and modern practice of the organization of regulatory activity in financial markets is described. Traditional theoretical arguments in favor of and against combining the functions of monetary policy and banking supervision within the Bank of Russia are considered and analyzed under current conditions. The impact of the global financial crisis is taken into account in terms of the need to institutionalize macroprudential policies and to coordinate them with microprudential policies. Based on this analysis the conclusion is made about the absence of fundamental preconditions for preserving the status quo in relation to banking supervision by the Bank of Russia in the context of considerable costs of correcting its errors. There commendation to phase out seniorage financing of banking supervision is given.

Public Administrative Law in a Globalized Concept: Legal Nature of the Collaboration of the EU and the Basel Committee

Journal of International Economic Law ◽

10.1093/jiel/jgz015 ◽

2019 ◽

Vol 22 (2) ◽

pp. 229-245 ◽

Cited By ~ 1

Author(s):

Erzsébet Csatlós

Keyword(s):

Public Administration ◽

Global Solutions ◽

Administrative Law ◽

Multilevel Governance ◽

Financial Supervision ◽

The European Union ◽

Banking Supervision ◽

Administrative System ◽

Basel Committee ◽

Supranational Level

Abstract Multilevel governance describes a global system that enrolls some State functions to perform global solutions for global problems. Multilevel-governance and multilevel administration has legality and accountability concerns on their own, although, there are multilevel structures with non-State playground of trans-regulatory nature at the supranational level of cooperation which means additional shades to the colourful palette. The procedure and the structure concerning the creation and the evaluation of effective banking supervision standards in Europe is unique. Given the fact that the European administrative system is also unique, and as Basel rules are produced in a trans-regulatory network, the collaboration of the two sui generis systems requires the rethinking of the classical legal order features. Rule of law which is the basis of classical international relations in the view of public administration of States is challenged by the newly emerged solutions. Necessity and proportionality are put on a scale with classical values and requirements of public administration and efficiency and effectiveness seem to put it on the side of the new type of collaboration. The normative background of such structure is still immature. The multilevel administrative system of financial supervision including the European Union and the Basel Committee for Banking Supervision at supranational level or speaking in a wider context: the framework for multilevel governance with non-state actors at supranational level, is therefore an example for global administrative law of infant status.

BAIL-IN AND PRIVATE INTERNATIONAL LAW: HOW TO MAKE BANK RESOLUTION MEASURES EFFECTIVE ACROSS BORDERS

International and Comparative Law Quarterly ◽

10.1017/s0020589316000555 ◽

2016 ◽

Vol 66 (1) ◽

pp. 107-142 ◽

Cited By ~ 5

Author(s):

Matthias Lehmann

Keyword(s):

International Law ◽

Global Financial Crisis ◽

Private International Law ◽

The European Union ◽

Cross Border ◽

National Courts ◽

Bank Resolution ◽

Regulatory Cooperation ◽

Model Law ◽

AbstractBank resolution is key to avoiding a repetition of the global financial crisis, where failing financial institutions had to be bailed out with taxpayers’ money. It permits recapitalizing banks or alternatively winding them down in an orderly fashion without creating systemic risk. Resolution measures, however, suffer from structural weakness. They are taken by States with territorially limited powers, yet they concern entities or groups with global activities and assets in many countries. Under traditional rules of private international law, these activities and assets are governed by the law of other States, which is beyond the remit of the State undertaking the resolution. This paper illustrates the conflict between resolution and private international law by taking the example of the European Union, where the limitations of cross-border issues are most acute. It explains the techniques and mechanisms provided in the Bank Resolution and Recovery Directive (BRRD) and the Single Resolution Mechanism (SRM) Regulation to make resolution measures effective in intra-Eurozone cases, in intra-EU conflicts with non-Euro Member States and in relation to third States. However, it also shows divergences in the BRRD's transposition into national law and flaws that have been uncovered through first cases decided by national courts. A brief overview of third country regimes furthermore highlights the problems in obtaining recognition of EU resolution measures abroad. This article argues that regulatory cooperation alone is insufficient to overcome these shortcomings. It stresses that the effectiveness of resolution will ultimately depend on the courts. Therefore, mere soft law principles of regulatory cooperation are insufficient. A more stable and uniform text on resolution is required, which could take the form of a legislative guide or, ideally, of a model law. It is submitted that such a text could pave the way for greater effectiveness of cross-border resolution.

Challenges for Modern Monetary Policy

Journal of Central Banking Theory and Practice ◽

10.2478/jcbtp-2018-0010 ◽

2018 ◽

Vol 7 (2) ◽

pp. 5-24 ◽

Cited By ~ 1

Author(s):

Nikola Fabris

Keyword(s):

Monetary Policy ◽

Global Financial Crisis ◽

Banking Supervision ◽

Macroprudential Policy ◽

New Approach ◽

The Past ◽

Monetary Economy ◽

Policy Objectives ◽

Abstract The first central banks were founded in the XVII century and monetary policy has been evolving ever since. Knowledge on monetary economy has improved significantly over the last couple of decades and a consensus has been reached in a number of areas. As a result, hyperinflations have been extremely rare over the past decades. The global financial crisis challenged traditional monetary policy that was based on the approach involving one instrument (reference interest rate) and one goal (price stability). It is obvious that we need a new approach to monetary policy and I believe that changes will happen gradually in the future. This paper consists of two parts. The first part covers the traditional monetary policy and deals with issues where consensus has been reached, as well as with issues on monetary policy objectives, transparency, and macroprudential policy. The second part addresses the issues that pose a challenge for monetary policy and for which there is no complete consensus. This part elaborates on the dilemma involving rules versus discretions, a new approach to banking supervision, monetary policy during a crisis, the role of econometric models, and the need for international coordination of monetary policy.