Political Economy of Financial Regulation

Project Start:01/2019
Researchers:Rainer Haselmann, Shikhar Singla, Vikrant Vig
Category: Financial Intermediation
Funded by:LOEWE

In this project, we study the decision making of financial regulators in an international standard setting. Since the introduction of the Basel Accord, regulators negotiate harmonized rules that most economies around the world incorporate into their national law. We have started to construct a unique dataset containing the positions of banks and regulators regarding the most important issues of Basel II and III. Further, we aim to apply texture analysis to evaluate the tone of regulators' speeches around certain events. We further want to examine the watering down of important issues negotiated in the Basel II/III frameworks.