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Issues of Political Economy in Banking Regulation: A Survey

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  • Srivyal Vuyyuri
  • Ganesh S Mani

Abstract

This article reviews the literature on political economy of banking regulation. The organization of this paper is based on the two main traditions about regulation, namely the normative or prudential and the positive political economy traditions. Several theoretical elements are extracted from the review of the specialized literature on regulation. The main aspects covered here are the rationale and instruments for banking regulation; the failure of governments in various settings; endogenous regulation and the political economy of banking regulation. The paper also covers a new dimension of banking regulation – as a dialectic process.

Suggested Citation

  • Srivyal Vuyyuri & Ganesh S Mani, 2003. "Issues of Political Economy in Banking Regulation: A Survey," The IUP Journal of Bank Management, IUP Publications, vol. 0(4), pages 53-71, November.
    • Handle: RePEc:icf:icfjbm:v:02:y:2003:i:4:p:53-71
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