Setting Up a System of Global Financial Supervision

This article analyzes global financial market regulators, with a brief look at institutional reforms within the global financial system. Its purpose is to detect and outline major shifts in the interaction of the global financial regulators within the last decade. A structural analysis of the vast empirical data on the activities of the global regulators led to a selection of the most important institutions and to a description of the major measures. The authors studied the documents issued by these institutions, assessed their relevance and the intensity of their cooperation as well as the logic of interactions among them, outlined the priorities in their goals, and established a pattern in the functioning of the institutions as an integrated system. They concluded that a consolidated system of institutions of global financial governance exists. This system has grown in size, but remains viable. It comprises both long-time established and newly legitimized formal and informal global institutions. The role of informal institutions is growing. They provide a necessary flexibility in operations and a high level of compliance at the same time. This study focused on the activities of specialized international institutions, whose importance is constantly increasing although their influence has not yet been fully revealed. The article considers many aspects of global banking governance among the top governance priorities of the emerging system. In their conclusions, the authors justify the point that the system of global financial governance has the potential to continue developing and become more efficient