XXVI Edition

14-15-16 December 2017"

The Political Economy of Basel III

Bengtsson ELIAS, Högskolan i Halmstad

This paper seeks to shed light on the new global standards for banking regulation - the so-called Basel III accord - by answering two interrelated questions: Are there any divergence in stakeholders’ preferences on global banking standards? What determines the success of stakeholders in influencing such standards? Answers to these questions are sought by constructing a database of coded responses received in the Basel III consultation round. The results are then interpreted from a neoliberal institutional perspective. By doing this, the findings offer important new insights on differences across stakeholder categories in terms of their preferences and abilities to influence regulatory processes in finance. While the results largely support claims that private and financial sector stakeholders are abler in influencing regulatory processes and outcomes to their benefits, this paper reveals differences between stakeholders depending on their location in geographical regions, types of economies and economic sectors. The paper thereby offers empirical insights on characteristics of the international political economy in banking and finance that are commonly assumed but less often empirically investigated.

Area: Financial Regulation and Supervision

Keywords: Political economy; Global financial standards; Basel Committee on Banking Supervision; Basel III; Banking regulation.

Paper file

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