Regulatory cooperation on cross-border banking – progress and challenges after the crisis

Publication date: 3 Feb 2016 | Publication type: National Institute Economic Review | External Author(s): Beck, T | JEL Classification: F28, G21, G28 | Journal: National Institute Economic Review Issue 235 | Publisher: Sage Publications, London

This paper surveys the recent academic literature on the economics of cross-border regulatory cooperation as well as recent policy developments in this area. While institutional arrangements of cross-border regulatory cooperation used to focus on day-to-day supervisory tasks, the crisis has given an impetus to a focus on cooperation at the bank resolution stage, with an array of different cooperation forms. A growing theoretical literature has documented different externalities arising from national supervision of cross-border banks, while empirical evidence has been relatively scarce. The paper concludes with a forward looking agenda both for policy reform and academic research in this area.

Keyword tags: 
bank regulation
bank resolution
cross-border banking
regulatory cooperation