Financial Regulatory Harmonization in East Asia: Balancing Domestic and International Pressures for Corporate Governance Reforms

26 Pages Posted: 23 Mar 2011

See all articles by Richard W. Carney

Richard W. Carney

China Europe International Business School (CEIBS)

Date Written: March 20, 2011

Abstract

Is the harmonization of financial regulatory regimes possible in East Asia? Focusing on corporate governance, which many see as a critical part of the 1997 Asian financial crisis, and which is also seen as unresponsive to calls for change, this paper argues that such harmonization is possible, but that it will not be according to the “best practices” advocated by the International Monetary Fund, World Bank, Organisation for Economic Co-operation and Development, and other international organizations. At present, actors generally feign compliance with these international rules and standards. But this creates potential long-term problems by allowing distortions to persist and accumulate over time. By identifying the key actors that determine regulatory outcomes, this paper points to an alternative regulatory framework that would be adopted more comprehensively. This alternative framework is a compromise between the “best practices” advocated by international organizations, and the domestic political realities of East Asia.

Keywords: financial regulatory regimes, financial regulation, harmonization financial regulation, corporate governance

JEL Classification: G32, G34, G38, P48

Suggested Citation

Carney, Richard W., Financial Regulatory Harmonization in East Asia: Balancing Domestic and International Pressures for Corporate Governance Reforms (March 20, 2011). ADBI Working Paper No. 269, Available at SSRN: https://ssrn.com/abstract=1791305 or http://dx.doi.org/10.2139/ssrn.1791305

Richard W. Carney (Contact Author)

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
101
Abstract Views
994
Rank
399,957
PlumX Metrics