Understanding the disciplinary aspects of neoliberal regulations: The case of credit-risk regulation under the Basel Accords

Baud, Céline; Chiapello, Ève

doi:10.1016/j.cpa.2016.09.005

Cited by 31 publications

(17 citation statements)

References 26 publications

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“…The regulators' rationale on installing new self-checks and balances to curb excessive risk-taking by banks in the aftermath of the financial crisis was linked to their historical perception of IA as a control and governance mechanism (Chambers 2014;Collier and Zaman 2005;Mihret 2014;Sarens et al 2013). However, contrary to the recent thesis of Baud and Chiapello (2016), the regulators, in our case, still believed in self-regulation and hesitated to suggest a strict approach to the IA of risk culture (Power 1997(Power , 1999. The implementers, in contrast, promoted the status quo of IA avoiding costly implementations, fearing intervention in the profiteering activities by regulators (Wahlström 2006(Wahlström , 2009.…”

Section: Discussionmentioning

confidence: 54%

“…The monitoring and control were aimed at the conformance of employees' conduct to codes and policies set by top management and the board. The emphasis on monitoring and control promoted the objectification of individuals' conduct, highlighting dysfunctional and unwarranted behavior as the prime reason for failures and disasters (Baud and Chiapello 2016;MacLullich 2003;Vaughan 1999). However, the two actors had divergent goals and political intentions.…”

Section: Discussionmentioning

confidence: 99%

“…The trust-deficit in corporations, coupled with a societal trust-deficit (Power 1997), has spurred regulatory demands for tighter control (Baud and Chiapello 2016;Chambers 2014;Collier and Zaman 2005). As a result, ethics and risk culture have been included in the ambit of IA (Palermo et al 2016;Ring et al 2016).…”

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

“…Finally, the exposure of our process on the relationship between the empirical material and theoretical constructs in the previous sections imparts additional transparency and trustworthiness. (Baud and Chiapello 2016;Palermo et al 2016). Here, we restrict our analysis to the views of the three regulators, the FSB, the BCBS, and the EBA, as these regulators have shown recent interest in the IA of risk culture.…”

Section: Trustworthiness Of Data and Analysismentioning

confidence: 99%

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Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Sinha

Arena

2018

J Bus Ethics

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This exploratory study investigates the manifold conceptions of the internal auditing (IA) of risk culture prevalent among four influential actors of the financial sector-regulators, normalizers, consultants, and implementers. By inductive analysis of 20 interviews and 295 documents, we illustrate a two-step interpretive scheme utilized by the four actors in their IA approaches of risk culture: defining broad goals and designing visibility schemes. The visibility schemes were tied to the demarcation, measurement, as well as the IA data collection techniques of risk culture. Our results indicate two dichotomous interpretations among the four actors concerning the IA of risk culture. The first interpretation, prevalent among regulators and implementers, promotes the control of risk culture primarily through verification. The second interpretation, adopted by consultants and normalizers, promotes the control of risk culture by IA along with the empowerment of employees through training programs. Our results not only contribute to understanding IA expansions, specifically to non-tangible domains such as risk culture but also enrich the literature exploring the mechanisms different stakeholders utilize to shape weakly professionalized IA practices.

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Section: Discussionmentioning

confidence: 54%

Section: Discussionmentioning

confidence: 99%

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

Section: Trustworthiness Of Data and Analysismentioning

confidence: 99%

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Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Sinha

Arena

2018

J Bus Ethics

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“…It is not only that governments increasingly rely on markets as privileged sites and vehicles for the provision of public goods (Morgan and Campbell, 2011). Financialization also involves a proliferation of regulations, governance frameworks and formal rules that have reconfigured capitalist modes of ownership and exchange, as well as structures of information and liquidity in markets (Carruthers and Stinchcombe, 1999;Baud and Chiapello, 2017). In contrast to the rhetoric of free markets and self-constrained government often associated with neoliberalism, we can thus observe how practices of governing, regulatory frameworks, and processes of market coordination become ever more entangled and aligned with one another, jointly re-defining the institutional foundations of contemporary capitalism (Carruthers, 2015).…”

Section: Introductionmentioning

confidence: 99%

How Central Bankers Learned to Love Financialization: The Fed, the Bank, and the Enlisting of Unfettered Markets in the Conduct of Monetary Policy

Walter¹,

Wansleben²

2018

Preprint

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Central banks’ role in financialization has received increasing attention in recent years. These debates have predominantly revolved around authorities’ “benign neglect” of asset bubbles, their de-regulatory policies, and the safety-nets they provide for speculative exuberance. Most analyses refer to the dominance of pro-market interests and ideas to explain these actions. The present article moves beyond these accounts by showing how an alignment between techniques of monetary governance and ‘unfettered’ financial markets can explain central banks’ endorsement of increasingly fragile structures of liquidity and their strategic ignorance towards growing amounts of debt. We analyze the processes of abstraction and formalization by which the “programmes” and “technologies” of monetary governance have been made compatible with the texture of contemporary finance; and we show how central banks’ attempts to make markets more amenable to their methods of policy implementation shaped new conduits for financial growth. As empirical cases, we discuss the Federal Reserve’s experiments with different policy frameworks in the 1980s and the Bank of England’s twisted path to inflation targeting from 1979 to 1997. These cases allow us to demonstrate that the infrastructural power of contemporary central banking is predicated on the same institutional foundations that have made financialization possible.

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Revisiting credit risk and banks performance of China's commercial banks before and after Covid 19 pandemic

Twum

Agyemang

Sare

2022

J Corp Accounting Finance

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The effectiveness of the financial market is reflected in the financial crisis which mostly results in credit risk. The impact of credit risk in China is likely to affect the global economy since China is the fastest‐growing economy as well as the second‐best economy in the world in terms of gross domestic product. Using panel data for twenty‐eight listed commercial banks in China from 1990 to 2020, the study explored the relationship between credit risk and business performance. The authors utilized the Generalized Methods of Moments (GMM) as the primary estimator while the Pooled Mean Group (PMG) was used as a robust estimator. A negative and statistically significant relationship was found between non‐performing loan and return on equity, as well as loan loss provision and profitability of the bank. On the contrary, capital adequacy ratio revealed a positive and statistically significant relationship with bank performance. Credit growth on the other hand recorded positive but insignificant relationship with performance of banks. The findings will add up to existing literature on credit risk and business performance of commercial banks.

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Understanding the disciplinary aspects of neoliberal regulations: The case of credit-risk regulation under the Basel Accords

Cited by 31 publications

References 26 publications

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

How Central Bankers Learned to Love Financialization: The Fed, the Bank, and the Enlisting of Unfettered Markets in the Conduct of Monetary Policy

Revisiting credit risk and banks performance of China's commercial banks before and after Covid 19 pandemic

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