The Perils of International Regime Complexity in Shadow Banking

by Lucia Quaglia

Overview

Despite the role of shadow banking in the building up of the 2008 international financial crisis, the massive size of this sector, its cross-border nature, and the risks it entails for financial stability, the post-crisis regulation of shadow banking has remained rather feeble. Why?

The Perils of International Regime Complexity in Shadow Banking identifies a 'game of shadows', which unfolded recursively concerning the definition, monitoring, and regulation of shadow banking internationally. Thus, states, regulators, and private actors tended to cast light away from various parts of the shadow banking system - shadow banking was (re)fined over time, its measurement was narrowed down, lessening the (perceived) need for regulation.

The playing out of such a game was facilitated by the international architecture for shadow banking governance, which is a 'regime complex' characterized by the presence of multiple institutions and elemental regimes governing a set of related issues. Indeed, shadow banking is a quintessential case for demonstrating the perils of international regime complexity, which magnifies problems that are endemic in governing global finance - namely, interstate competition, disagreement between technocratic bodies, and the power of the financial industry - while splintering solutions, due to the fragmentation of regulatory authority.

Empirically, this book examines various elemental regimes concerning different aspects of shadow banking, namely: international standards for defining, measuring, and monitoring global shadow banking; international standards for shadow banking entities, including money market funds, hedge funds, and investment funds; international standards for shadow banking activities, such as securitization, securities lending, and repos; international standards for bank capital exposures to shadow banking.

Product Details

ISBN-13:	9780192866523
Publisher:	Oxford University Press
Publication date:	10/31/2022
Pages:	234
Product dimensions:	9.00(w) x 6.50(h) x 1.30(d)

About the Author

Lucia Quaglia, Professor of Political Science, University of Bologna

Lucia Quaglia is Professor of Political Science at the University of Bologna (IT). She was a Professor of Political Science at the University of York (2012-2017) (UK). Quaglia was awarded research fellowships by the Hanse-Wissenschafts Kolleg (DE), the University of Bremen (DE), the Fonds National de la Recherche (Luxembourg), the Max Planck Institute in Cologne (DE), the Scuola Normale Superiore (IT), and the European University Institute (IT). She has published more than 10 books, 6 of which with Oxford University Press. She has guest co-edited 4 special issues of highly ranked academic journals.

Table of Contents

1. Introduction: Shadow Banking2. Understanding the Politics of Regulating Global Finance3. The International Architecture for Shadow Banking Governance4. Defining, Measuring and Monitoring Global Shadow Banking5. Shadow Banking Entities: The Age of Asset Management? 6. Securities Financing: Too Much or Too Little Repos? 7. Securitization: A Problem or a Solution? 8. Bank Exposures to Shadow Banking: Dangerous Liaisons? 9. Overall Comparative Assessment10. Conclusions: Shadow Banking and Finance

Editorial Reviews

"Quaglia (political science, Univ. of Bologna, Italy) identifies a connection between the relatively unregulated shadow banking sector and the 2008 financial crisis. She finds that post-crisis attempts to create a well-functioning global regulatory regime have proved insufficient for reducing systemic risk and that current risk conditions may exceed those predating 2008." — Choice

From the Publisher