Identifying and Remedying Deferential Norms in Prudential Cultures

The Finance, Law, and Economics and Political Economy of Europe working groups are thrilled to announce the first webinar in our series in preparation for our meeting with Dr Andrea Enria, Chair of the Supervisory Board of the ECB. This kick off session is entitled "Identifying and Remedying Deferential Norms in the Prudential Cultures for Regulating Banks and Other Financial Firms in Particular Areas of the World", and will be hosted by Edward Kane (Boston College). The aim of this first session is to critically assess the cultural differences in rule enforceability in the supervisory domain, in order to extract specific questions that we would like to address to Dr Enria.
More concretely, the session will examine the substantial literature comparing differences in the formal structure of financial rules that apply in different countries, and will focus on the little work that compares differences in the cultures surrounding their enforceability. Understanding the norms of a country's regulatory culture is important if one is trying to predict how governments will respond to actual– as opposed to hypothetical–crisis pressures. The session will critically explore the assumptions beyond rule enforcement by focusing on US and EU policy makers, and the consequences that these assumptions have on the way crisis are handled. Finally, the session aims to foster research that goes beyond comparisons between formal differences, to work that focuses on actual cultural enforceability dimensions.