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Regulatory Novelty after Financial Crises: A Quantitative Text Analysis of International Banking and Securities Standards, 1975-2016

Pagliari, S. ORCID: 0000-0003-0612-5296 and Wilf, M. (2020). Regulatory Novelty after Financial Crises: A Quantitative Text Analysis of International Banking and Securities Standards, 1975-2016. Regulation and Governance, doi: 10.1111/rego.12346

Abstract

Financial crises are often understood as triggers for important innovations in international regulation of financial markets, but existing studies primarily rely on evidence from individual initiatives, assessed against noncomparable benchmarks. In order to provide systematic evidence of financial crises’ impact on international financial regulatory change, this paper develops a novel text-as-data approach to measure regulatory novelty. We use this approach to analyze the full population of international banking and securities standards between 1975 and 2016. Contrary to theoretical expectations, our empirical findings indicate rules designed by international banking and securities regulators following financial crises are often as likely to build on and adapt existing international regulations as those designed before a crisis. We also find international banking rules published after the 2008 Global Financial Crisis are an important exception. This paper provides unique insights into the evolution of global financial rules and a general approach for analyzing regulatory change.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article: Pagliari, S. and Wilf, M. (2020). Regulatory Novelty after Financial Crises: A Quantitative Text Analysis of International Banking and Securities Standards, 1975-2016. Regulation and Governance, which is to be published in final form at http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1748-5991. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Publisher Keywords: Financial Regulation, Financial Crisis, Regulatory Novelty; Text-as-Data, International Standard-setters
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
J Political Science > JZ International relations
Departments: School of Arts & Social Sciences > International Politics
Date Deposited: 17 Jun 2020 10:54
URI: https://openaccess.city.ac.uk/id/eprint/24365
[img] Text - Accepted Version
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