SouthViews No. 171, 5 October 2018
A Human Rights Based Approach to International Financial Regulatory Standards
By Daniel D. Bradlow
Globalization and information and communication technologies pushed national financial regulators to establish international standard setting bodies (SSBs) which promote non-binding international financial regulatory standards. However, finance inevitably has social and human rights impacts and the SSBs and their members are not meeting their responsibility to account for these impacts in their international standards. This failure means that financial regulators and institutions may underestimate the risks associated with their operations leading to misallocations of credit, less safe financial institutions and less efficient and transparent financial markets. To avoid this problem, SSBs should adopt a human rights approach to standard setting. The benefits of doing so will exceed the costs.
Download the SouthViews:
This article was tagged: Communication Technologies, Finance, Globalization, Human Rights, Human Rights Approach to Standard Setting, Information Technologies, International Financial Regulatory Standards, International Standard Setting Bodies (SBBs), National Financial Regulators