Basel III: Dynamics of State Implementation
![handle is hein.journals/hilj53 and id is 523 raw text is: VOLUME 53, NUMBER 2, SUMMER 2012
Basel III: Dynamics of State Implementation
Narissa Lyngen*
INTRODUCTION
In December 2010, the Basel Committee on Banking Supervision issued
the text of the Basel III Framework,' a series of global financial regulations
that respond to the Great Recession, the financial crisis of 2007-2009.2 Ba-
sel III is the third iteration of the Basel Accords, which, along with the
Basel Committee and its negotiation process, have been hailed as an exem-
plar of international regulation and law-making, but also critiqued as
deeply flawed and subject to influence by the banks regulated by the agree-
ment, among other issues.4
Although not formally binding, Basel I and II were widely adopted by
member countries of the Basel Committee, as well as by many non-member
countries.' However, implementation of the Accords has always been con-
tentious, with variations in state-level adoption, and efforts to implement
Basel III have been similarly problematic.6 The Framework has been met
with protests from banks about the burden of the new regulatory require-
* J.D. Candidate 2013, Harvard Law School.
1. See Press Release, Bank for Int'l Settlements, Basel III rules text and results of the quantitative
impact study issued by the Basel Committee (Dec. 16, 2010), available at http://www.bis.org/press/
pl01216.htm.
2. See HUBERTO M. ENNIS & DAVID A. PRICE, THE FEDERAL RESERVE BANK OF RICHMOND, BASEL
III AND THE CONTINUING EVOLUTION OF BANK CAPITAL REGULATION ECONOMIC BRIEF 1 (2011),
available at http://www.richmondfed.org/publications/research/economicbrief/201 1/eb1I 1-06.cfm.
3. ANNE-MARIE SLAUGHTER, A NEW WORLD ORDER (2004) {hereinafter SLAUGHTER BOOK]; Anne-
Marie Slaughter, The Real New World Order, 76 FOREIGN AFF. 183 (1997) (hereinafter Slaughter Foreign
Affairs Article); Michael S. Barr and Geoffrey P. Miller, Global Administrative Law: The View from Basel,
17 EUR. J. INT'L L. 15 (2006).
4. See generally DANIEL K. TARULLO, BANKING ON BASEL: THE FUTURE OF INTERNATIONAL FINAN-
CIAL REGULATION (2008); Chris Brummer, How International Financial Law Works (and How It Doesn't),
99 GEO. L.J. 257 (2011); Thomas Oatley & Robert Nabors, Redistributive Cooperation: Market Failure,
Wealth Transfers, and the Basel Accord, 52 INT'L ORG. 35 (1998); Pierre-Hugues Verdier, Transnational
Regulatory Networks and Their Limits, 34 YALE J. INT'L L. 113 (2009).
5. See, e.g., Daniel E. Ho, Compliance and International Soft Law: Why Do Countries Implement the Basel
Accord?, 5 J. INT'L ECON. L. 647, 649. The United States is an exception in this regard, and has not fully
implemented Basel II reforms. See BASEL COMMITTEE ON BANKING SUPERVISION, PROGRESS REPORT
ON BASEL III IMPLEMENTATION 4 (2011) [hereinafter BASEL III IMPLEMENTATION REPORT), available at
http://www.bis.org/publ/bcbs203.pdf.
6. See Tarullo, supra note 4, at 45. Cf BASEL III IMPLEMENTATION REPORT, supra note 5, at 4 (indi-
cating that, as of September 2011, six countries, including the United States, were still in the process of
implementing Basel II).](ViewImageLocal?handle=hein.journals/hilj53&div=16&collection=&method=preview&ext=.png&size=3)
What Is HeinOnline?
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Basel III: Dynamics of State Implementation
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most