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A note on the differences between European and international methodologies of banking regulation and supervision

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  • Goodhart, C. A. E.
  • Sato, Hideki

Abstract

Although monetary policy is the main tool for central banking in order to control inflation/deflation, micro- and macroprudential instruments are also essential for crisis management. In this paper, we aim to clarify the differences between European and international banking methodologies. The European approach as represented by the European Banking Union, is based on a harder legalistic approach, whereas the international approach implemented by the Basel Committee on Banking Supervision has a soft-law methodology. We propose two comparative standpoints: “uniformity” versus “diversity”, and a “legislative” versus "principle-based” approach.

Suggested Citation

  • Goodhart, C. A. E. & Sato, Hideki, 2024. "A note on the differences between European and international methodologies of banking regulation and supervision," LSE Research Online Documents on Economics 122044, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:122044
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    File URL: http://eprints.lse.ac.uk/122044/
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    References listed on IDEAS

    as
    1. Micossi, Stefano, 2017. "A Blueprint for Completing the Banking Union," CEPS Papers 13212, Centre for European Policy Studies.
    2. Schenk, Catherine R., 2020. "Regulatory foundations of financialisation: May Day, Big Bang and international banking, 1975–1990," Financial History Review, Cambridge University Press, vol. 27(3), pages 397-417, December.
    3. Thorsten Beck & Barbara Casu (ed.), 2016. "The Palgrave Handbook of European Banking," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-52144-6, December.
    4. David Howarth & Lucia Quaglia, 2014. "The Steep Road to European Banking Union: Constructing the Single Resolution Mechanism," Journal of Common Market Studies, Wiley Blackwell, vol. 52, pages 125-140, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    European Banking Union (EBU); banking regulation and supervision; Basel Committee on Banking Supervision (BCBS);
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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