International Financial Regulation and the Basel Accord: How the Impact of a Soft Law Whisper Results in Compliance Throughout the Globe

Abstract

The Basel Accord has often been regarded as one of the most successful forms of international regulation due to the high level of compliance from various actors despite the lack of direct repercussions. International financial regulation as a form of soft law is able to exert a power over actors that generally ensures compliance. The Basel Accord continues to perform as a stable method of international regulation, despite the consistent presence of flaws within the global financial system, due to the flexibility that is offered by the Accord as well as the mutual benefit that is received by all actors who choose to comply. Unlike other international treaties and agreements that face high levels of non-compliance, the Basel Accord has been widely accepted and adopted by all nations including nations that were not embraced in the decision-making process. Although different nations have unique approaches to accepting the Accord there is a generally high level of universality in the application of the regulation. As nations continue to develop in the global political economy the Basel Accord will continue to regulate international finance as a soft power.