Russian Banking Regulation and Supervision in Global Financial Governance: Some Theoretical Perspectives on Soft Law Approaches to Banking Supervision
The Chapter considers general picture of soft law in modern banking regulation and supervision and raises the question about achievements and challenges in the course of its implementation.
The main problem of the efficiency of modern soft law in global financial governance lies not in the willingness or unwillingness of the countries to follow the standards of soft law, but to a certain degree in the quality of the content of sodt law itself.
In fact, modern global soft law in global financial governance is not global in the deepest sense of the word. It is global in that it is developed by the leading industrialised countries, and is being expanded around the globe. But the true globality comes from a different approach - from elaborating the standards which take into consideration not only the desired outcome, but legal realities of the countries, cultural differences between different jurisdictions, with an understanding that the same rules may lead to different and sometimes even negative outcomes in different cultures.
The time has come for the soft law of global financial governance to take into consideration not just the technical aspects of the industry, but legal and cultural differences between the countries to develop a set of standards, which not just pursue some important targets, but provide for a balanced financial system, where interests of the parties are balanced when pursuing this important public law objective. Otherwise the soft law may develop into another tool of international pressure, instead of efficient system of regulation.