|| This seminar is open ONLY to EUI members ||

Join us for the next event of the 'Finance in the Tuscan Hills' seminar series, where we host David Murphy, visiting professor in practice at the LSE Law School.

The prudential regulation of internationally active banks is based on standards promulgated by the Basel Committee on Banking Supervision (the BCBS or the Basel Committee ). In this transnational organization, bank regulators from leading jurisdictions come together to agree to highly detailed and prescriptive standards. National implementations of the Basel rules and standards typically differ from the BCBS standard in only minor ways, often only by 'gold plating'. The legitimacy of this two stage rule-making process has recently come under intense scrutiny when U.S. regulators proposed controversial rules intended to complete the post-2008 rule making package known as Basel 3 in July 2023. The substantive and procedural shortcomings with the proposed Basel 3 (so-called) ‘endgame’ rule have shined a light on longstanding flaws with the legal and democratic legitimacy of the Basel regime. 

This talk will describe bank prudential rule making at the Basel Committee and its implementation in national rules, thereby highlighting the separate but interacting deficiencies in each process, and raising questions about the legitimacy of the enterprise.

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David Murphy is a visiting professor in practice at the LSE Law School. He has written extensively on financial regulation, derivatives, financial market infrastructure and systemic risk. His most recent book, Derivatives Regulation: Rules and Reasoning from Lehman to Covid, appeared from OUP in 2022. He was previous senior advisor to the Executive Director of Prudential Regulation at the Bank of England after a distinguished career in investment banking.

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The FBF seminar series ‘Finance in the Tuscan Hills’ focuses on financial sector issues and aims to bring together researchers from across the EUI community, who share an interest in these subjects.