The banking lobby refers to the representatives from various firms and organizations seeking favorable terms from governments for big banks and other financial service companies through lobbying and advocacy groups.
The banking lobby generally opposes stricter government regulation of financial markets while tending to stress the importance of banks in the economy. Some are concerned, however, that they may seek terms that do not necessarily increase performance of the economy as a whole, but only benefit the large banks. Excessive bank lobbying has been linked to weakened banking regulations, something that many believe contributed to the 2008 financial crisis.[1] This led to a wave of banking reform, including, but not limited to, banking lobbies.
On an international level, banks lobby the Basel Committee on Banking Supervision (BCBS), the foremost global authority in establishing standards for the oversight of banks and a platform for collaboration on supervisory issues related to banking.[2] The wealthier, internationally active banks and/or banks with more strict banking regulations in their home country tend to lobby the BCBS the most.[1]
- ^ a b Chalmers, Adam William (March 2017). "When Banks Lobby: The Effects of Organizational Characteristics and Banking Regulations on International Bank Lobbying". Business and Politics. 19 (1): 107–134. doi:10.1017/bap.2016.7. ISSN 1469-3569. S2CID 157358648.
- ^ "Federal Reserve Board - Basel Regulatory Framework". Board of Governors of the Federal Reserve System. Retrieved March 30, 2023.