Part VI International Monetary Law and the International Financial Architecture, XLII International Regulation of the Banking Sector

The banking sector has always been extensively engaged in cross-border transactions. Over the last decades, the international business of banks and their international presence through affiliates or branches in other countries have continuously increased. The difference between States in standards for licensing and supervision of banks as well as in the implementation of existing standards gives rise to strategic behaviour (regulatory arbitrage). The risks associated with certain more or less transparent products have become highly contagious, as the crisis...