Table Of ContentInternationalPoliticalEconomySeries
SeriesEditor:TimothyM.Shaw,VisitingProfessor,UniversityofMassachusetts
Boston,USAandEmeritusProfessor,UniversityofLondon,UK
The global political economy isin flux asa seriesof cumulativecrisesimpacts
its organization and governance. The IPE series has tracked its development
in both analysis and structure over the last three decades. It has always had
a concentration on the global South. Now the South increasingly challenges
the North as the centre of development, also reflected in a growing number
of submissionsandpublicationson indebtedEurozone economiesinSouthern
Europe.
An indispensable resource for scholars and researchers, the series examines a
variety of capitalisms and connections by focusing on emerging economies,
companies and sectors, debates and policies. It informs diverse policy
communities as the established trans-Atlantic North declines and ‘the rest’,
especiallytheBRICS,rise.
Titlesinclude:
KateErvineandGavinFridell(editors)
BEYONDFREETRADE
AlternativeApproachestoTrade,PoliticsandPower
RayKiely
THEBRICS,US‘DECLINE’ANDGLOBALTRANSFORMATIONS
PhilipFountain,RobinBushandR.MichaelFeener(editors)
RELIGIONANDTHEPOLITICSOFDEVELOPMENT
MarkusFraundorfer
BRAZIL’SEMERGINGROLEINGLOBALSECTORALGOVERNANCE
Health,FoodSecurityandBioenergy
KatherineHirschfeld
GANGSTERSTATES
OrganizedCrime,KleptocracyandPoliticalCollapse
MatthewWebbandAlbertWijeweera(editors)
THEPOLITICALECONOMYOFCONFLICTINSOUTHASIA
MatthiasEbenau,IanBruffandChristianMay(editors)
STATESANDMARKETSINHYDROCARBONSECTORS
CriticalandGlobalPerspectives
JeffreyDayton-Johnson
LATINAMERICA’SEMERGINGMIDDLECLASSES
EconomicPerspectives
AndreiBelyiandKimTalus
STATESANDMARKETSINHYDROCARBONSECTORS
DriesLesageandThijsVandeGraaf
RISINGPOWERSANDMULTILATERALINSTITUTIONS
LeslieElliottArmijoandSaoriN.Katada(editors)
THEFINANCIALSTATECRAFTOFEMERGINGPOWERS
ShieldandSwordinAsiaandLatinAmerica
MdMizanurRahman,TanTaiYong,AhsanUllah(editors)
MIGRANTREMITTANCESINSOUTHASIA
Social,EconomicandPoliticalImplications
BartholomewPaudyn
CREDITRATINGSANDSOVEREIGNDEBT
ThePoliticalEconomyofCreditworthinessthroughRiskandUncertainty
LourdesCasanovaandJulianKassum
THEPOLITICALECONOMYOFANEMERGINGGLOBALPOWER
InSearchoftheBrazilDream
ToniHaastrup,andYong-SooEun(editors)
REGIONALISINGGLOBALCRISES
TheFinancialCrisisandNewFrontiersinRegionalGovernance
KobenaT.Hanson,CristinaD’AlessandroandFrancisOwusu(editors)
MANAGINGAFRICA’SNATURALRESOURCES
CapacitiesforDevelopment
DanielDaianu,CarloD’Adda,GiorgioBaseviandRajeeshKumar(editors)
THEEUROZONECRISISANDTHEFUTUREOFEUROPE
ThePoliticalEconomyofFurtherIntegrationandGovernance
KarenE.Young
THE POLITICAL ECONOMY OF ENERGY, FINANCE AND SECURITY IN THE
UNITEDARABEMIRATES
BetweentheMajilisandtheMarket
MoniqueTaylor
THECHINESESTATE,OILANDENERGYSECURITY
BenedicteBull,FulvioCastellacciandYuriKasahara
BUSINESSGROUPSANDTRANSNATIONALCAPITALISMINCENTRALAMERICA
EconomicandPoliticalStrategies
LeilaSimonaTalani
THEARABSPRINGINTHEGLOBALPOLITICALECONOMY
TowardsaPoliticalEconomyoftheUndergroundinGlobalCities
InternationalPoliticalEconomySeries
SeriesStandingOrderISBN978–0–333–71708–0hardcover
978–0–333–71110–1paperback
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Global Governance and
Regulatory Failure
The Political Economy of Banking
Roman Goldbach
DeutscheBundesbank,Germany
©RomanGoldbach2015
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Firstpublished2015by
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For my parents and for Lisa, with gratitude
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Contents
ListofFigures ix
ListofTables x
Acknowledgements xi
ListofAbbreviations xii
1 TheGreatRecession,RegulatoryFailureandGlobal
Governance 1
1.1 Globalgovernanceandfinancialcrisis 1
1.2 Transgovernmentalgovernanceandregulatoryfailure 2
1.3 Interdependenceandthecollisionofcompetition
stateandglobalgovernance 5
1.4 TransnationallayeringandtheNewInterdependence
Approach 8
1.5 Eclecticisminthestudyofworldpolitics 12
1.6 Theargument:thetransnationalregulatoryregime
andregulatoryfailure 13
1.7 Planofthebook 16
2 GlobalFinancialInstabilityandtheEvolutionofGlobal
BankingRegulation 20
2.1 Financialstabilityandbankingregulation 20
2.2 EvolutionoftheBaselCommittee 25
3 Theory:InfluenceinGlobalBankingRegulationand
theTransnationalRegulatoryRegime 45
3.1 Influenceinglobalbankingregulation 47
3.2 Competitionstateandopportunitystructuresofthe
regulatoryregime 52
3.3 Globalgovernanceandopportunitystructuresofthe
transnationalregulatoryregime 66
4 GlobalBankingRegulationBeforetheGreatRecession:
TheDynamicsofBaselII 76
4.1 Anapproachtoassessinfluenceintheglobalpolitical
economy 77
4.2 BaselIIpolicyanalysis 87
vii
viii Contents
4.3 TheglobalpoliticsoftheBaselIIprocess 100
4.4 Summary:BaselII,theGreatRecessionandthe
globalpoliticaleconomy 161
5 GlobalBankingRegulationaftertheGreatRecession:
BaselIII,FSB,G20 181
5.1 Newpolicies:BaselIIIandglobalsystemically
importantbanks 182
5.2 Newlayersinthegovernancestructureandthe
deepeningtransnationalregulatoryregime:BCBS,
FSB,G20 193
6 Conclusion:LayersandGapsintheGlobalPolitical
Economy 208
6.1 Globalbankingregulationandfinancialstability 209
6.2 Globalfinancialgovernanceandregulatoryreform:
diligent,butfeeble 218
6.3 Layersandgapsingoverningtheglobalpolitical
economy 221
Notes 226
References 247
Index 267
List of Figures
2.1 TheBaselCommitteeonBankingSupervision,
organisationalchart(officialversionuntil2012) 36
2.2 TheBaselCommitteeonBankingSupervision,
organisationalchart(officialversionsince2013) 38
3.1 Processmapofinfluenceinthetransnationalregulatory
regimeofbanking 53
3.2 Nestedtransnationalregulatorystandardsgamewith
twointeractionmodesofeitherinternational
negotiationortransnationaldeliberation 68
4.1 Integrationandrejectionratesinepisode1 110
4.2 Integrationandrejectionratesinepisode2 120
4.3 Integrationandrejectionratesinepisode3 142
4.4 Integrationandrejectionratesinepisode4 158
4.5 IntegrationandrejectionratesinBaselII(sumofall
episodes) 173
ix
