We evaluate how a country's governance structure for macroprudential policy affects its implementation of Basel III macroprudential capital buffers. We find that the probabilities of using the countercyclical capital buffer (CCyB) are higher in countries that have financial stability committees...

This paper introduces a voting model into a setting with negative borrowing externalities to study voter preferences for prudential regulation. Voters internalize the general equilibrium impact of prudential policy on future asset prices and therefore support a universal limit on current debt....

The Basel III Accord was the centerpiece of the international regulatory response to the global financial crisis, setting new capital requirements for internationally active banks. This paper explains the divergent preferences on Basel III of national regulators in three countries that...

Over the past four decades, across the OECD countries and beyond, we observe a simultaneous increase (a) in the number, the budgets and the staffing of regulatory agencies, as well as the number of regulations, and (b) of economic liberalization, as measured by economic freedom and doing...

Literature on the international financial architecture suggests that financial crises have had profound effects on both the balance of power in the establishment of financial regulation, and the economic impact of regulation on countries and regulated entities. In this article, we seek to add to...

This paper seeks to shed light on the most recent global standard for banking regulation - the so-called Basel III accord - by answering two interrelated questions: Are there any divergence in stakeholders’ preferences on global banking standards? What determines the success of stakeholders in...