Ban Publishes Journal Paper on Shadow Banking
Cornel Ban, Assistant Professor of International Relations and Co-Director of the Global Economic Governance Initiative, published a recent journal paper examining who controls global policy debates on shadow banking regulation. In the paper, Ban discusses how experts secured control over how issues in shadow banking regulation are treated by examining the policy recommendations of the Bank of International Settlements, the International Monetary Fund and the Financial Stability Board.
Ban’s paper, entitled “Grey Matter in Shadow Banking: International Organizations and Expert Strategies in Global Financial Governance,” was published in the Review of International Political Economy.
From the text of the paper:
Shadow banking scares regulators. In 2014 the US authorities acknowledged the importance of shadow banking by extending official credit and other safety nets to the system and its depositors (the so-called ‘institutional cash pools’, see Helgadottır 2016; Pozsar et al. 2010). A year later, the European Central Bank warned that this lightly regulated part of the finance sector was a systemic threat due to its ‘increased size and remaining opaqueness’. Even China’s recent financial troubles cannot be adequately grasped without understanding the functioning of this country’s distinct shadow banking system. Nine years after the outbreak of the crisis, there is still a great deal of uncertainty over how regulators should approach shadow banking.
The existing literature in International Political Economy tells us that regulators and their networks of experts should rush to establish authority over technically complex issues in global governance (B€uthe and Mattli 2011; Lall 2014). We also know that state, private sector, and civil groups are active in propagating expert networks on financial issues (Kastner 2014; Newman and Posner 2016).
You can read the entire paper here.
Cornel Ban is the author of ten peer-reviewed articles on economic policy strategies in Southern Europe, Eastern Europe and Latin America, professionals and economic policy, the politics of IMF fiscal policy advice and European financial crisis management. His most recent book was published by Oxford University Press and deals with the local adaptation and crisis resilience of global economic paradigms in Spain and Romania. You can read more about him here.