Toward normative fragmentation: An East Asian financial architecture in the post-global crisis world

Sohn, Injoo

doi:10.1080/09692290.2011.613350

Cited by 14 publications

(12 citation statements)

References 27 publications

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“…Given the difficulty of inventing a complete global legal framework from the basic terms upwards, it is likely that that jurisdictional competition will continue to be a factor in the formulation of financial regulation, weakening it despite regulators' concerns, a conclusion which seems to be borne out by recent work on the regulation of the shadow banking system post-crisis (Rixen, 2013). On a normative level, this study then lends support to those who speak out for principled minimalism (Pistor, 2010;Rodrik, 2009;Sohn, 2012;Warwick Commission, 2009), which allows host-country regulators to impose regulation above and beyond global rules on domestic and foreign banks.…”

Section: Review Of International Political Economysupporting

confidence: 56%

In the Shadow of Basel: How Competitive Politics Bred the Crisis

Thiemann

2014

Review of International Political Economy

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What if global governance mechanisms undermine the capacity of national banking regulators to deal with the deviant activities of their banks? Such was the case, this paper argues with respect to the Basel Accords and the regulation of the bank-based shadow-banking system. Securitizationactivities by banks, driven by regulatory arbitrage have been an integral part of the shadow banking sector and a central transmission mechanism during the financial crisis. They have been identified as problematic by the international regulatory community since 1999, motivating reforms in Basel 2. This paper investigates why, nevertheless, regulatory loopholes that allowed banks to engage in these activities without core capital charges persisted in almost all Western jurisdictions pre-crisis. It lays emphasis on the global nature of the securitization business in conjunction with its national regulation, and shows that these national regulations on the fringes of global banking regulation were driven by competitiveness concerns. The Basel Accords were central in this dynamic, as they guaranteed the global nature of this market and gave national banking regulators the leeway to exempt securitization-activities from global regulation. Rather than eliminating competitive inequity concerns, the Basel Accords channelled them to its fringes, where they introduced a regulatory race to the bottom.

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Section: Review Of International Political Economysupporting

confidence: 56%

In the Shadow of Basel: How Competitive Politics Bred the Crisis

Thiemann

2014

Review of International Political Economy

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“…Helleiner and Paglirari () predict a move towards greater ‘cooperative decentralisation’ in the global financial governance architecture. Sohn () offers possible solutions in support of cooperative decentralisation, namely (1) principled minimalism and host regulation; (2) decomposition and issue linkage and (3) informal intermediaries.…”

Section: Discussionmentioning

confidence: 99%

Regional and Multilateral Surveillance: Normative Tensions and Implications for Cooperation in East Asia

Robles¹

2014

Global Policy

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Financial crises have underscored two important points for East Asia's economic and financial stability and resilience: regional economies must become more self‐reliant while acknowledging that the growing interdependence has intensified the need for cooperation. Reconciling the need for self‐reliance with the reality of increasing interdependence has critical implications for East Asian financial regionalism as it drives how regional and multilateral processes link and interact with each other. This article explores how normative tensions can limit coordination of regional and multilateral surveillance mechanisms and investigates whether the 2008 global financial crisis has changed the normative dynamics in surveillance. Studies on the interaction of ideas and interests and its impact on financial governance have made important contributions to discussions on postcrisis reform. However, current analyses tend to overlook how normative tensions drive collective action between regional and multilateral levels. Furthermore, existing research in this field tends to focus on processes of change and devote little attention to cases wherein it might result in stasis instead. This article focuses on how two trends – the growing divergence in conceptions of financial risk and stability and the loss of an intellectual compass to guide the surveillance agenda – may hinder deeper cooperation between regional and multilateral surveillance mechanisms in East Asia.

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“…Normative fragmentation (or the absence of new global consensus) in the area of international finance in the first decade of the 21st century (Sohn 2011) has made it much more difficult to know whom and what to balance against and also what ideas to offer instead. On the one hand, the Japanese government, as well as many Japanese financial institutions that recently emerged from their decade-long restructuring, have welcomed American and European initiatives for greater prudential regulations and modification of the neoliberal commitment to deregulation.…”

Section: Balancing Against Whom and In What Arena?mentioning

confidence: 99%

The Financial Statecraft of Emerging Powers

Armijo¹,

Katada²

2014

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The global political economy is in flux as a series of cumulative crises impacts 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 submissions and publications on indebted Eurozone economies in Southern 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', especially the BRICS, rise.

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Toward normative fragmentation: An East Asian financial architecture in the post-global crisis world

Cited by 14 publications

References 27 publications

In the Shadow of Basel: How Competitive Politics Bred the Crisis

In the Shadow of Basel: How Competitive Politics Bred the Crisis

Regional and Multilateral Surveillance: Normative Tensions and Implications for Cooperation in East Asia

The Financial Statecraft of Emerging Powers

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