Strulik, Torsten (2006) Knowledge politics in the field of global finance? The emergence of a cognitive approach in banking supervision. Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

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Abstract

This paper examines the relevance of knowledge and ignorance in the governance of global finance. First, it will show that the intense innovation dynamics of financial busi-ness are creating regulatory problems that are not only of a normative and monetary na-ture, but also of a cognitive one. Taking the field of banking as an example, a growing uncertainty regarding the outcome of financial decisions becomes discernable, which not only results from the globalization and increasing knowledge intensity of transactions but also from the market actors' tendency to engage in a more active treatment of ignorance. Next, attention will be drawn to concepts of knowledge politics and corresponding regu-latory strategies which have the potential to transcend not only national boundaries but also to enable collective learning between heterogeneous actors. On the basis of this, the emergence of a cognitive approach in the governance of global banking will be illus-trated. Finally, attention will be shifted to the revised capital adequacy framework for global banking, commonly known as Basle II, and an analysis of the extent to which conditions for an effective combination of private and public expertise are being created.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	Basle Committee on Banking Supervision , International cooperation, Knowledge management, International economic relations, Political science -- Economic aspects
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	March 2006
Number:	No.195
Number of Pages:	28
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Funder:	Volkswagenstiftung (VWS)
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URI:	http://wrap.warwick.ac.uk/id/eprint/1910

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