Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America
Abstract Over the last few decades, the rivalry between regulatory convergence and divergence has dominated scholarly debate. In accordance with this divide, countries tend to either converge toward Basel rules, becoming globally standardized players, or diverge from them, leaving their local instit...
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Fundação Getúlio Vargas, Escola de Direito
2023-08-01
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| Series: | Revista Direito GV |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322023000100228&lng=en&tlng=en |
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| author | Mario Schapiro |
| author_facet | Mario Schapiro |
| author_sort | Mario Schapiro |
| collection | DOAJ |
| description | Abstract Over the last few decades, the rivalry between regulatory convergence and divergence has dominated scholarly debate. In accordance with this divide, countries tend to either converge toward Basel rules, becoming globally standardized players, or diverge from them, leaving their local institutions untouched, particularly within developmental States. Banking regulation in Argentina, Brazil, Chile, and Mexico, however, brings challenging evidence to that debate. Brazil, which, from among the group, has most converged toward Basel rules, relies on a sizeable developmental State. Argentina, which has also widely converged, relies on significant State intervention in the financial system. Conversely, Chile, a market-friendly country, has not adhered to international capital rules on the same level. Finally, Mexico has been in-between, reinforcing State-owned banks and adopting the new Basel standards, however, to a lesser degree, compared to Brazil. These findings support the claim that such countries combine global and local institutions more diversely than the convergence-divergence divide predictions would suggest. |
| format | Article |
| id | doaj-art-d75d612af6a94fa4aca0ddb4fe4d36f4 |
| institution | Kabale University |
| issn | 2317-6172 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Fundação Getúlio Vargas, Escola de Direito |
| record_format | Article |
| series | Revista Direito GV |
| spelling | doaj-art-d75d612af6a94fa4aca0ddb4fe4d36f42025-02-03T09:37:02ZengFundação Getúlio Vargas, Escola de DireitoRevista Direito GV2317-61722023-08-011910.1590/2317-6172202331Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin AmericaMario Schapirohttps://orcid.org/0000-0003-4136-4516Abstract Over the last few decades, the rivalry between regulatory convergence and divergence has dominated scholarly debate. In accordance with this divide, countries tend to either converge toward Basel rules, becoming globally standardized players, or diverge from them, leaving their local institutions untouched, particularly within developmental States. Banking regulation in Argentina, Brazil, Chile, and Mexico, however, brings challenging evidence to that debate. Brazil, which, from among the group, has most converged toward Basel rules, relies on a sizeable developmental State. Argentina, which has also widely converged, relies on significant State intervention in the financial system. Conversely, Chile, a market-friendly country, has not adhered to international capital rules on the same level. Finally, Mexico has been in-between, reinforcing State-owned banks and adopting the new Basel standards, however, to a lesser degree, compared to Brazil. These findings support the claim that such countries combine global and local institutions more diversely than the convergence-divergence divide predictions would suggest.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322023000100228&lng=en&tlng=enBanking regulationLatin Americaembeddednessinsulationconvergence-divergence |
| spellingShingle | Mario Schapiro Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America Revista Direito GV Banking regulation Latin America embeddedness insulation convergence-divergence |
| title | Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America |
| title_full | Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America |
| title_fullStr | Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America |
| title_full_unstemmed | Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America |
| title_short | Beyond the Convergence-Divergence Divide: Comparing Banking Regulation in Latin America |
| title_sort | beyond the convergence divergence divide comparing banking regulation in latin america |
| topic | Banking regulation Latin America embeddedness insulation convergence-divergence |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322023000100228&lng=en&tlng=en |
| work_keys_str_mv | AT marioschapiro beyondtheconvergencedivergencedividecomparingbankingregulationinlatinamerica |