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The varieties of banking regulation in the EU: An empirical analysis
Author(s) -
Kudrna Zdenek
Publication year - 2020
Publication title -
governance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.46
H-Index - 76
eISSN - 1468-0491
pISSN - 0952-1895
DOI - 10.1111/gove.12442
Subject(s) - harmonization , legislation , jurisdiction , subsidiary , european union , business , member states , capital (architecture) , international economics , variety (cybernetics) , international trade , market economy , economics , finance , political science , multinational corporation , law , physics , archaeology , acoustics , history , artificial intelligence , computer science
The EU strives to harmonize banking regulation, while its member states continue to insist on a degree of differentiation to accommodate national specifics. A new data set of national options and discretions (O&Ds) embedded in EU banking legislation facilitates systematic analysis of member states' policy preferences across multiple policy cycles. Its results suggest that states' O&D choices are related to their respective variety of banking capitalism. Coordinated and liberal market economies choose O&Ds to protect distinct subsets of regulatory parameters delaying full harmonization. Dependent market economies on the Eastern periphery use O&Ds to prevent the outflow of capital from foreign‐owned subsidiaries under their jurisdiction. These deep institutional roots suggest that many O&Ds will be carried over to the upcoming generation of EU banking legislation, despite the increased harmonization pressures in the banking union.