A Human Rights Based Approach to International Financial Regulatory Standards
SouthViews, Vol. 171, October 2018
7 Pages Posted: 8 Nov 2018
Date Written: October 5, 2018
Globalization and information and communication technologies pushed national financial regulators to establish international standard setting bodies (SSBs) which promote non-binding international financial regulatory standards. However, finance inevitably has social and human rights impacts and the SSBs and their members are not meeting their responsibility to account for these impacts in their international standards. This failure means that financial regulators and institutions may under-estimate the risks associated with their operations leading to misallocations of credit, less safe financial institutions and less efficient and transparent financial markets. To avoid this problem, SSBs should adopt a human rights approach to standard setting. The benefits of doing so will exceed the costs.
Keywords: Human Rights, International Finance, International Financial Regulation, International Standard Setting Bodies
JEL Classification: F02, F39, F53, F60, G15, G18, K33
Suggested Citation: Suggested Citation