The Perils of International Regime Complexity in Shadow Banking

The Perils of International Regime Complexity in Shadow Banking identifies a game of shadows concerning the definition, monitoring, and regulation of shadow banking internationally, facilitated by the international architecture for shadow banking governance. This book examines various elemental regimes concerning different aspects of shadow banking, such as international standards for defining, measuring, and monitoring global shadow banking, entities, activities, and bank capital exposures.

Format: Hardback
Length: 240 pages
Publication date: 13 June 2022
Publisher: Oxford University Press

Despite the significant contribution of shadow banking to the buildup of the 2008 international financial crisis, the massive size, cross-border nature, and risks associated with this sector have resulted in relatively feeble post-crisis regulation. The Perils of International Regime Complexity in Shadow Banking sheds light on a complex game of shadows that unfolded concerning the definition, monitoring, and regulation of shadow banking internationally. This game involved states, regulators, and private actors casting light away from different aspects of the shadow banking system, leading to a (re)fining of shadow banking over time, a narrowing of its measurement, and a diminished perceived need for regulation.

The international architecture for shadow banking governance is characterized by a regime complex, comprising multiple institutions and elemental regimes governing a set of related issues. This complexity magnifies problems endemic in global finance governance, such as interstate competition, disagreement between technocratic bodies, and the power of the financial industry. At the same time, it splinters solutions due to the fragmentation of regulatory authority.

Empirically, this book examines various elemental regimes related to shadow banking, including international standards for defining, measuring, and monitoring global shadow banking; international standards for shadow banking entities, such as money market funds, hedge funds, and investment funds; international standards for shadow banking activities, such as securitization, securities lending, and repos; and international standards for shadow banking governance, such as regulatory oversight and coordination.

By examining these elemental regimes, the book provides valuable insights into the challenges and opportunities associated with regulating shadow banking in a globalized financial system. It highlights the need for a comprehensive and coordinated approach to shadow banking regulation that can address the risks posed by this sector while promoting financial stability and economic growth.

Weight: 518g
Dimension: 240 x 164 x 21 (mm)
ISBN-13: 9780192866523