Financial Regulatory Harmonization and the Globalization of Finance

27 Pages Posted: 20 Apr 2016

Multiple version iconThere are 2 versions of this paper

Date Written: October 2002


In the globalizing economy, national policymakers are often forced to accept the challenge of financial integration. Faced with the potentially destabilizing effects of international financial markets, they have to strengthen financial regulation, importing international best practices and aligning domestic with foreign regulation, to avoid destabilizing phenomena of regulatory arbitrage. Jordan and Majnoni explore the main features of the ongoing process of worldwide financial regulatory convergence and the role played by the global dissemination of financial standards and codes. They analyze the reasons behind the generalized acceptance of international best practices and the limits of the standards and codes approach to financial regulatory harmonization.

This paper - a joint product of the Financial Sector Operations and Policy Department and the Cofinancing and Project Finance Group, Legal Vice Presidency - is part of a larger effort in the Bank to study the impact of financial regulation on economic development.

Suggested Citation

Jordan, Cally E. and Majnoni, Giovanni, Financial Regulatory Harmonization and the Globalization of Finance (October 2002). World Bank Policy Research Working Paper No. 2919. Available at SSRN:

Cally E. Jordan (Contact Author)

Melbourne Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010

Giovanni Majnoni

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-458-7542 (Phone)
202-522-2106 (Fax)


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