IMF on transnational banking: critical thinking, but conventional policies
In the current issue of Governance, Daniela Gabor examines how the global financial crisis affected the International Monetary Fund’s attitude toward the regulation of transnational banking. Post-crisis, some IMF officials came to view global banks as “super-spreaders” of systemic risk. But this critical attitude did not influence policy advice given to individual countries, which continued to take a benign view of transnational banking. Why the disjunction? One answer may be the persistence of disagreement within the IMF, or reluctance to confront central banks in member countries, “typically their closest allies in domestic policy arenas.” Read the article.
