Global Financial Governance and Banking Regulation

Abstract

Abstract This chapter sheds light on the decision-making processes in international financial standard setting bodies and it analyses critically whether or not the views and interests of other countries and stakeholder groups outside are adequately taken into account in the development of international banking supervisory standards. It discusses how post-crisis international financial regulatory reforms have increased the number of countries involved in international standard setting from the small number of advanced industrialized countries pre-crisis to a much broader grouping that includes large emerging market and developing countries and representatives from regional trading blocs. Although international financial standard setting bodies have made significant progress in broadening decision-making to include more representation from a wider number of countries, these bodies still do not meaningfully involve other countries (outside of the G20) in decision-making, nor do they take their views into account. Moreover, international financial bodies still neither consult nor involve stakeholder groups that represent broader societal interests.