The Legitimacy of Banking and Financial Standards: Representation, Due Process and Regulatory Capture

The (multilevel) articulation of the European participation in international financial fora: the example of the Basel Accords

“…This was, for instance, noted by the European Parliament in a briefing[42] 12. Similar concerns have also been voiced within the US Congress[43] 13. The European Parliament has been expressing its willingness to be more closely involved for long as it already did so in the framework of the negotiations of the Basel II agreement[2 p. 37].…”

“…The FSB, whose task it is ‘to coordinate at the international level the work of national financial authorities and international standard setting bodies (SSBs) in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies’ [ 32 Art. 1] but which has also developed its own standards on some occasions [ 13 p. 184], played an important role in shaping the Basel III Accords [ 1 p. 305], and, in fact, the division of tasks between the two forums may not be always easy to identify. The accountability of the FSB’s actions is guaranteed through its reporting to the G20 [ 17 further on the FSB].…”

“…12 The European Parliament has mobilised around this issue, noting that 'national parliaments and the European Parliament should not be reduced to a role of mere rubberstamping but must be incorporated, actively and comprehensively, into the whole decision-making process' [29]. 13 The European Parliament has actually voiced concerns in this regard by, inter alia, approving a resolution on the 'EU role in the framework of international financial, monetary and regulatory institutions and bodies' [29] in 2015. Among other things, it proposed the conclusion of an interinstitutional agreement 'with the aim of formalising a 'financial dialogue', to be organised with the European Parliament for the purpose of establishing guidelines regarding the adoption and the coherence of European positions in the run-up to major international negotiations, making sure that these positions are discussed and known ex ante and ensuring a follow-up, with the Commission reporting back regularly on the application of these guidelines and scrutiny' [29 para.…”