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Open Economies Review

, Volume 17, Issue 4–5, pp 443–458 | Cite as

International Financial Cooperation and the Number of Adherents: The Basel Committee and Capital Regulation

  • John C. PattisonEmail author
Article

Abstract

Theoretical analyses of international cooperation point to cooperation being optimized with a small number of participants. History is consistent with this view. However an anomaly is the international capital standards created by the Basel Committee on Banking Supervision (BCBS). Basel I has over 100 adherents, and approximately that number of countries have been identified in a survey as candidates for Basel II. The author demonstrates that this is not an anomaly. First, Basel I was a product of a duopoly and then an oligopoly prior to approval by the BCBS. Secondly, self-interest and other factors explain why more than 100 countries have agreed to accept these standards.

Keywords

banking supervision bank for international settlements capital 

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Copyright information

© Springer Science + Business Media, LLC 2006

Authors and Affiliations

  1. 1.Canadian Imperial Bank of CommerceOntarioCanada

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