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Financial regulatory harmonization and the globalization of finance

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  • Jordan, Cally
  • Majnoni, Giovanni

Abstract

In the globalizing economy, national policymakers are often forced to accept the challenge of financial integration. Faced with the potentially destabilizing effects of international financial markets, they have to strengthen financial regulation, importing international best practices and aligning domestic with foreign regulation, to avoid destabilizing phenomena of regulatory arbitrage. The authors explore the main features of the ongoing process of worldwide financial regulatory convergence and the role played by the global dissemination of financial standards and codes. They analyze the reasons behind the generalized acceptance of international best practices and the limits of the standards and codes approach to financial regulatory harmonization.

Suggested Citation

  • Jordan, Cally & Majnoni, Giovanni, 2002. "Financial regulatory harmonization and the globalization of finance," Policy Research Working Paper Series 2919, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2919
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    References listed on IDEAS

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    Cited by:

    1. Hyoung‐Kyu Chey, 2007. "Do markets enhance convergence on international standards? The case of financial regulation," Regulation & Governance, John Wiley & Sons, vol. 1(4), pages 295-311, December.
    2. Adalbert Winkler, 2012. "The Financial Crisis: A Wake-up Call for Strengthening Regional Monitoring of Financial Markets and Regional Coordination of Financial Sector Policies?," Chapters, in: Masahiro Kawai & David G. Mayes & Peter Morgan (ed.), Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia, chapter 7, Edward Elgar Publishing.
    3. Edgar Demetrio Tovar García, 2007. "Globalización del capital y desarrollo institucional del sistema financiero," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(17), pages 75-107, July-Dece.
    4. Susan Newberry, 2003. "Reporting Performance: Comprehensive Income and its Components," Abacus, Accounting Foundation, University of Sydney, vol. 39(3), pages 325-339, October.

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