{
  "title": "Bank Lobbying: Regulatory Capture and Beyond",
  "publication": "IMF Working Papers, August 9, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2019/08/09/bank-lobbying-regulatory-capture-and-beyond-45735",
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  "summary": "In this paper, we discuss whether and how bank lobbying can lead to regulatory capture and have real consequences through an overview of the motivations behind bank lobbying and of recent empirical evidence on the subject.",
  "sections": [
    {
      "heading": "Overview and scope",
      "content": "- Authors: Deniz O Igan, Thomas Lambert\n- Publication date: August 9, 2019\n- Series: Working Paper No. 2019/171\n- Pages: 30\n- Volume: 2019\n- Issue: 171\n- DOI: https://doi.org/10.5089/9781484347546.001\n- ISBN: 9781484347546\n- ISSN: 1018-5941\n- Citation preview (as shown on the page): Deniz O Igan, and Thomas Lambert. \"Bank Lobbying: Regulatory Capture and Beyond\", IMF Working Papers 2019, 171 (2019), accessed 9/11/2026, https://doi.org/10.5089/9781484347546.001"
    },
    {
      "heading": "Key findings and empirical conclusions",
      "content": "- The paper examines whether and how bank lobbying can lead to regulatory capture and produce real economic consequences.\n- Overall findings are consistent with regulatory capture, which:\n  - lessens the support for tighter rules and enforcement;\n  - in turn allows riskier practices and worse economic outcomes.\n- The evidence provides insights into how the rising political power of banks in the early 2000s propelled the financial system and the economy into crisis.\n- The authors caution that these findings should not be interpreted as a call for an outright ban of lobbying."
    },
    {
      "heading": "Motivations and mechanisms analyzed",
      "content": "- The paper provides an overview of the motivations behind bank lobbying.\n- It surveys recent empirical evidence on how lobbying influences regulatory decisions and supervisory behavior.\n- The analysis connects political influence by banks to weaker regulation and enforcement, facilitating risk-taking."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- The paper points to a need for rethinking the framework governing interactions between regulators and banks.\n- Policy directions emphasized:\n  - Enhanced transparency of regulatory decisions.\n  - Strengthened checks and balances within the decision-making process.\n- These measures are presented as preferable to an outright ban on lobbying."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subject: Banking, Deposit insurance, Economic sectors, Expenditure, Financial crises, Financial institutions, Financial sector, Global financial crisis of 2008-2009, Mortgages\n- Keywords: bank lobbying, banks, financial crises, financial crisis, Financial sector, Global, Global financial crisis of 2008-2009, lobbying, lobbying agenda, lobbying bank, lobbying expenditure, lobbying operation, lobbying process, Mortgages, political economy, regulation, regulatory capture, supervision, WP\n\nIMF Working Paper: \"Bank Lobbying: Regulatory Capture and Beyond\", Deniz O Igan and Thomas Lambert, Working Paper No. 2019/171, August 9, 2019.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/08/09/bank-lobbying-regulatory-capture-and-beyond-45735"
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    "Authors: Deniz O Igan, Thomas Lambert",
    "Published: August 9, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484347546.001",
    "Authors: Deniz O Igan, Thomas Lambert",
    "Publication date: August 9, 2019",
    "Series: Working Paper No. 2019/171",
    "Pages: 30",
    "Volume: 2019",
    "Issue: 171",
    "DOI: https://doi.org/10.5089/9781484347546.001",
    "ISBN: 9781484347546",
    "ISSN: 1018-5941",
    "Citation preview (as shown on the page): Deniz O Igan, and Thomas Lambert. \"Bank Lobbying: Regulatory Capture and Beyond\", IMF Working Papers 2019, 171 (2019), accessed 9/11/2026, https://doi.org/10.5089/9781484347546.001",
    "The paper examines whether and how bank lobbying can lead to regulatory capture and produce real economic consequences.",
    "Overall findings are consistent with regulatory capture, which:",
    "The evidence provides insights into how the rising political power of banks in the early 2000s propelled the financial system and the economy into crisis.",
    "The authors caution that these findings should not be interpreted as a call for an outright ban of lobbying.",
    "The paper provides an overview of the motivations behind bank lobbying.",
    "It surveys recent empirical evidence on how lobbying influences regulatory decisions and supervisory behavior.",
    "The analysis connects political influence by banks to weaker regulation and enforcement, facilitating risk-taking.",
    "The paper points to a need for rethinking the framework governing interactions between regulators and banks.",
    "Policy directions emphasized:",
    "These measures are presented as preferable to an outright ban on lobbying.",
    "Subject: Banking, Deposit insurance, Economic sectors, Expenditure, Financial crises, Financial institutions, Financial sector, Global financial crisis of 2008-2009, Mortgages",
    "Keywords: bank lobbying, banks, financial crises, financial crisis, Financial sector, Global, Global financial crisis of 2008-2009, lobbying, lobbying agenda, lobbying bank, lobbying expenditure, lobbying operation, lobbying process, Mortgages, political economy, regulation, regulatory capture, supervision, WP",
    "**Working Paper**"
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