Chapter 5 Cross-Border Electronic Banking: Perspectives on Systemic Risk and Sovereignty
Author: RAJ BHALA
Language:
English
Keywords:
BOOK; bank; value; transaction; bank supervisor; debtor; settlement risk; derivatives contract; bank secrecy; value card; Currencies; Legal support in revenue administration; Credit; Global; North America; Europe; Caribbean; Eastern Europe; Asia and Pacific; bank management; cross-border electronic banking; bank regulator; market liquidity risk; adjudicatory process; Cross-border banking; Systemic risk; International banking

Abstract

The interaction between electronic technology and international banking raises macrolevel challenges that involve a complex mix of finance, law, and policy. This chapter focuses on two broad classes of challenges: systemic risk and sovereignty.2 The first challenge is whether cross-border electronic banking has rendered the international banking system inherently more volatile. Are international banking transactions inherently more risky now than, for example, 20 years ago? In other words, this challenge raises a fundamental systemic public policy concern: To what extent do cross-border electronic banking transactions exacerbate systemic risk?

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ISBN:
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Publication Date:
20 May 1998
Publisher:
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DOI:
https://doi.org/10.5089/9781557756954.071
Pages:
867