International banking: Governance and regulation

Banking is probably one of the most strongly regulated businesses. With the rise of global banking and the development of large banking institutions into global powerhouses with now more than 3 trillion in assets under management, the question of internationally coordinated frameworks for bank regulation has become more pressing in the recent past and, in particular, since the global financial crisis of 2008/2009.
This course introduces students to the topic of international bank regulation. It starts by showing why banks and financial intermediaries exist and discusses different rationales for bank regulation. It then considers the two cornerstones of international bank regulation, capital and liquidity regulations as set out by the Basel Committee on Banking Supervision since 1988 (Basel I - III). Next, it discusses the challenges of internationally operating banks for the nation state and potential resolution and international coordination mechanisms. The course ends by considering the specific problems and regulatory frameworks in the European Monetary Union and the United States.