International cooperation or race to the bottom? Banking regulation in an integrating financial market
The prior discussion has advanced the argument that banking regulators have to make economic policy trade-offs based on their regulatory preferences, which derive form the nature of the financial system. As was shown, national banking regulators do not operate in a vacuum, but instead are faced with the interaction of domestic private interest influences that in many cases conflict with the original financial stability mandate assigned to them. Similar things can be said for the role of the national regulator in its international context.