Explaining the Reform of Banking Supervision in Europe: An Integrative Approach

National frameworks for banking and, more generally, financial supervision in various European countries have undergone significant changes in the last decade or so. What explains these supervisory reforms? This work addresses this question by examining the recent reforms in the United Kingdom, Germany, and Italy, engaging in a structured, focused comparison, mainly using process tracing and adopting an analytical framework articulated across three levels of analysis. It is argued that while international and EU factors acted as antecedent variables, establishing the background for the reforms, they were mediated by national factors—to be precise, by two independent variables—that account for distinctive modes and outcomes of reforms. In addition, the institutional strength of the central bank—the intervening variable—can make a difference to the process of reform by either inhibiting or catalyzing change.     

IMPROVING UK PUBLIC SERVICES: A REVIEW OF THE EVIDENCE

Over a number of years in the UK, public service improvement has been at the centre of both Conservative and Labour policy. Keen to make improvements in public services, the current Labour government is pursuing this issue more strongly than any other. This paper examines the concept of improvement and reviews the academic literature which has empirically assessed improvements in a range of public services. Drawn from over 50 studies of improvement, the evidence highlights seven determinants or improvement ‘triggers’ which have been put in place and which have had a positive effect on a public service. These include quality frameworks and public participation forums. The paper reviews the evidence and evaluates the strengths and weaknesses of the studies themselves. The findings of the paper indicate that, despite a political drive to improve public services, there is insufficient evidence available on ‘what works’ in bringing about improvement. The need for sustained research in this area is emphasized and conclusions are drawn on a way forward.     

The politics of financial services regulation and supervision reform in the European Union

Abstract.  The regulation and supervision of financial services in the European Union (EU) has undergone major reform between 1999 and 2004. This policy evolution is theoretically interesting, raising the question of which conceptual approaches better explain it, and it is also empirically relevant because it is an area of intense EU activity. This article provides a theoretically informed and empirically grounded explanation of the policy reform by evaluating the analytical leverage of three integration theories, mainly by relying on two methods – process tracing and congruence procedure – employing a variety of primary and secondary sources. It is argued that sequencing different theoretical approaches – interdependence , supranational governance and liberal intergovernmentalism – explains the various stages of the policy-making process – namely, background-setting, agenda-setting and decision making, as well as the main features of the outcome.