Abstract

Emily Jones, Associate Professor, Blavatnik School of Government, University of Oxford

Abstract In the wake of the global financial crisis, we have seen a series of reforms aimed at improving financial regulation, including a new set of global banking standards. While academic and policy debate has focused on the G20 countries at the core of the global financial system, what is happening in countries at the periphery? In this presentation, I will discuss how developing countries outside of the G20 are responding to global banking standards, and the political economy drivers of regulatory decisions. Close scrutiny of the data reveals widespread adoption of Basel II and III banking standards across developing countries, which is puzzling as the standards were not designed for developing countries and are costly to implement. Crosscountry statistical analysis and preliminary research from country case studies suggest that regulators in developing countries face strong market-based incentives to adopt the global standards – to facilitate the operation of international banks in their jurisdiction and to assist domestic banks to expand overseas. In contrast to other global financial standards, pressure from international financial institutions and other governments does not appear to be a strong driver for the adoption of Basel II and III in developing countries. About the Speaker Emily Jones is Associate Professor of Public Policy at the Blavatnik School of Government where she directs the Global Economic Governance Programme. Her research focuses on the ways in which developing country governments engage in global trade and financial regulation. Prior to her academic career, Dr. Jones worked for the UK’s Department for International Development, as an Overseas Development Institute Fellow in Ghana’s Ministry of Trade and Industry, and Oxfam GB.