Harmonising Basel III and the Dodd Frank Act through greater collaboration between standard setters and national supervisors

Ojo, Marianne (2012): Harmonising Basel III and the Dodd Frank Act through greater collaboration between standard setters and national supervisors.

Abstract

Having considered a vital means whereby the Basel III framework and the Dodd Frank Act could achieve a respectable degree of harmonization, in the paper which precedes this, namely, the paper on “Harmonising Basel III and the Dodd Frank Act through International Accounting Standards – Reasons why International Accounting Standards Should Serve as “Thermostats”, this paper considers another important means of effectively achieving the aims and objectives of these important and major regulatory reforms aimed at achieving greater financial stability.

In so doing, it will highlight challenges encountered by the Basel III framework, as well as that encountered by the Dodd Frank Act – particularly in the areas of enforcement, coordination and communication. In facilitating better enforcement, the need for high level principles, bright line rules and a more effective mandate will be emphasized. Furthermore, a system whereby greater collaboration between standard setters and national supervisors can be better facilitated requires effective coordination and communication mechanisms aimed at ensuring that vital decisions and information are communicated timely, accurately, effectively and completely.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial stability; Volcker Rule; Basel III; Dodd Frank; European Systemic Risk Board; supervisors; Basel Committee; coordination; information asymmetry; regulation; high level principles
• Subjects: D - Microeconomics > D0 - General; E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; K - Law and Economics > K2 - Regulation and Business Law; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; G - Financial Economics > G0 - General > G01 - Financial Crises

References

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Ojo M, “Building on the Trust of Management: Overcoming the Paradoxes of Principles Based Regulation” Banking and Financial Services Policy Report Volume 30 No 7 July 2011

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