MANAGING FINANCIAL REGULATION: THE REGULATOR'S TOOLKIT, THE ROLE OF PRIVATE ACTORS, AND INTERNATIONALIZATION
| Date | 01 September 2014 |
| DOI | http://doi.org/10.1111/padm.12110 |
| Author | MARTIJN GROENLEER |
| Published date | 01 September 2014 |
doi: 10.1111/padm.12110
BOOK REVIEW ESSAY
MANAGING FINANCIAL REGULATION: THE
REGULATOR’S TOOLKIT, THE ROLE OF PRIVATE
ACTORS, AND INTERNATIONALIZATION
MARTIJN GROENLEER
Banking Regulation and Globalization
Andreas Busch
Oxford University Press, 2012, 304 pp., £21.07 (pb), ISBN: 9780199655571
Managing Regulation: Regulatory Analysis, Politics, and Policy
Martin Lodge and Kai Wegrich
Palgrave Macmillan, 2012, 288 pp., £24.99 (pb), ISBN: 9780230298804
The Governance and Regulation of International Finance
Geoffrey P. Miller and Fabrizio Cafaggi
Edward Elgar, 2013, 224 pp., £64.96 (hb), ISBN: 9780857939470
REGULATION IN RELIEF
The failure to regulate international nancial markets in an adequate way is widely under-
stood to be one of the foremost causes of the global nancial crisis (e.g. De Larosière
Committee 2009; Financial Services Authority 2009). As the President of the European
Commission, José Manuel Barroso, stated, ‘The banking crisis exposed the gaps in nan-
cial services supervision in Europe. Our market was interdependent, but oversight was
purely national’ (European Commission 2010). Regulatory institutions had even created
incentives for irresponsible behaviour. For instance, banks were not required to retain on
their books part of the securities they issued, over-the-counter (OTC) trading of derivatives
was not centrally registered, and hedge funds and private equity rms were not obligated
to comply with the capital standards of the Basel II framework.
Yet there is also agreement that economic growth requires a regulatory framework
that stimulates – rather than suffocates – competition, entrepreneurship, and innovation.
Hence, banks worry about the possible negative effects of the regulatory response to the
crisis. They fear that economic recovery will be hampered by increased regulation and
stricter rules, such as the higher bars for funding and capital levels (Financial Times 2013).
Banks also complain about the overlapping of rules and regulators at multiple levels of
government, as this adds to complexity and generates uncertainty. For example, to limit
Martijn Groenleer is at the Faculty of Technology, Policy and Management, Delft University,The Netherlands.
Public Administration Vol.92, No. 3, 2014 (769–775)
© 2014 John Wiley & Sons Ltd.
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