Governance of International Banking

Dean of the Duisenberg School of Finance and Professor of Finance, Banking and Insurance, VU University Amsterdam

Well before the euro crisis, Dirk Schoenmaker was warning us that globalization might undermine financial stability. In this new book he analyzes the complex landscape of modern international banking in terms of a simple unifying concept: the 'trilemma' that financial stability, international financial integration, and autonomous national control over banking policy cannot all coexist. Schoenmaker provides a clear and accessible introduction to the issues that will prove indispensable for students at all levels, for their teachers, for finance professionals, and for policymakers.

• Preface ; Acknowledgments ; List of Figures ; List of Tables ; Abbreviations ; Introduction ; 1 Governance Challenges for Global Finance ; 1.1 Governance Challenges ; 1.2 International Policy Proposals ; 1.3 Conclusion ; 2 The Financial Trilemma: Theory ; 2.1 Policy Coordination ; 2.2 Modelling the Financial Trilemma ; 2.3 Conclusion ; 3 The Rise of International Banking ; 3.1 Strategy and Business Models ; 3.2 Empirical Evidence on International Banking ; 3.3 Financial Safety Net ; 3.4 Conclusion ; 4 Failing the Financial Trilemma ; 4.1 Potential for Conflicts of Interests ; 4.2 Case Studies of International Bank Failures ; 4.3 Conclusion ; 5 Solving the Financial Trilemma ; 5.1 International Coordination ; 5.2 Comparing Coordination Mechanisms ; 5.3 Containing Moral Hazard ; 5.4 No Coordination ; 5.5 Conclusion ; 6 Political Economy ; 6.1 Key Role of Politicians ; 6.2 Position of Supervisors and Banks ; 6.3 Countries Take Different Approaches ; 6.4 Conclusion ; 7 Global Governance ; 7.1 Framework for Governance ; 7.2 European Governance ; 7.3 Global Governance ; 7.4 Conclusion ; Conclusions ; Bibliography ; Index