International Financial Law
International Financial Law is a framework of rules, standards and practices that govern international financial markets and transactions. The objective of this framework is to create international financial stability. This stability has to be created in an environment of national jurisdictions, each pursuing their own national interest and governance standards, and is constantly threatened by the consequences of increasing globalization, technological development and financial innovation.
This Research Guide is intended as a starting point for research on International Financial Law. It provides the basic legal materials available in the Peace Palace Library, both in print and electronic format. Handbooks, leading articles, bibliographies, periodicals, serial publications and documents of interest are presented in the Selective Bibliography section. Links to the PPL Catalogue are inserted. The Library's systematic classification → Public international law and subject heading (keyword) International Financial Law are instrumental for searching through the Catalogue. Special attention is given to our subscriptions on databases, e-journals, e-books and other electronic resources. Finally, this Research Guide features links to relevant websites and other online resources of particular interest.
- Alexander, K. (ed.), Research Handbook on International Financial Regulation, Cheltenham, Elgar, 2012.
- Buckley, R.P., International Financial System: Policy and Regulation, Alphen aan den Rijn, Kluwer Law International, 2008.
- Bamford, C.G., Principles of International Financial Law, Oxford, Oxford University Press, 2011.
- Lastra, M.R., Legal Implications of International Monetary Stability, Oxford, Oxford University Press, 2010, pp. 447-501.
- Wood, P.R., Law and Practice of International Finance, London, Sweet and Maxwell, 2008.
- Boccuzzi, G., The European Banking Union: Supervision and Resolution, Basingstoke, Hampshire, Palgrave Macmillan, 2016.
- Brummer, C., Soft Law and the Global Financial System: Rule Making in the 21st Century (2nd. ed.), New York, NY, Cambridge University Press, 2015.
- Buckley, R.P., From Crisis to Crisis: the Global Financial System and Regulating Failure, Alphen aan den Rijn, Kluwer International, 2011.
- Desierto, D.A., Public Policy in International Economic Law: the ICESCR in Trade, Finance and Investment, Oxford, Oxford University Press, 2015.
- Ferran, E. (ed.), The Regulatory Aftermath of the Global Financial Crisis, Cambridge, Cambridge University Press, 2012.
- Fox, D., and W. Ernst (eds.), Money in the Western Legal Tradition: Middle Ages to Bretton Woods, Oxford, Oxford University Press, 2016.
- Geeroms, H. (et al.), The European Union and the Euro: How to Deal with a Currency Built on Dreams, Cambridge, Intersentia, 2014.
- Gleeson, S, and R. Guynn, Bank Resolution and Crisis Management: Law and Practice, Oxford, Oxford University Press, 2016.
- Grant, W., The Consequences of the Global Financial Crisis: the rhetoric of reform and regulation, Oxford, Oxford University Press, 2012.
- Jackson, J.H., T. Cottier and R.M. Lastra (eds.), International Law in Financial Regulation and Monetary Affairs, Oxford, Oxford University Press, 2012.
- Paterson, S., and R. Zakrzewski (eds.), McKnight, Paterson, and Zakrzewski on the Law of International Finance (2nd ed.), Oxford, Oxford University Press, 2017.
- Porter, T., Transnational Financial Regulation after the Crisis, London, New York, Routledge, Taylor and Francis Group, 2014.
- Schillig, M, Resolution and Insolvency of Banks and Financial Institutions, Oxford, Oxford University Press, 2016.
- Sciso, E., Accountability, Transparency and Democracy in the Functioning of Bretton Woods Institutions, Cham, Springer, 2017. (e-book)
- Scott, H.S. and A. Gelpern (eds.), International Finance : Transactions, Policy, and Regulation, New York, NY, Foundation Press Thomson Reuters, 2012.
- Tams, C.J. (et al.) (eds.), International Investment Law and the Global Financial Architecture, Cheltenham, Edward Elgar Publishing, 2017.
- Wegman, H., Investor Protection: Towards Additional EU Regulation of Investment Funds?, Alphen a/d Rijn, Kluwer Law International, 2016.
- Weiss, F., and A.J. Kammel, The Changing Landscape of Global Financial Governance and the Role of Soft Law, Leiden, Brill Nijhoff, 2015.
- Wymeersch, E., K.J. Hopt and G. Ferrarini (eds.), Financial Regulation and Supervision: a Post-Crisis Analysis, Oxford, Oxford University Press, 2012.
- Zimmermann, C.D., A Contemporary Concept of Monetary Sovereignty, Oxford, Oxford University Press, 2013.
- Alexander, K., "Rebuilding International Financial Regulation and Basel III”, Journal of Banking Law and Banking, 23 (2011), No. 5, pp. 337-344.
- Avi-Yonah, R.S. and Xu, H., “A Global Treaty Override? The New OECD Multilateral Tax Instrument and Its Limits”, University of Michigan Law School (March 17, 2017). [PDF]
- Brummer, C., "How International Financial Law Works (and How It Doesn't)", Georgetown Law Journal, 99 (2010-11) pp. 257-327.
- Chadwick, A., “Regulating Excessive Speculation: Commodity Derivatives and the Global Food Crisis”, International and Comparative Law Quarterly, 66 (2017), No.3, pp. 625-655. (e-article)
- Choi, S.J., (et al.), “Political Risk and Sovereign Debt Contracts”, Univ. of Chicago Institute for Law & Economics Olin Research Paper No. 583; U of Chicago, Public Law Working Paper No. 370, 2014. [PDF]
- Ferran, E., “Crisis-driven Regulatory Reform: where in the World is the EU Going?”, in Ferran, E., N. Moloney, J.G. Hill and J.C. Coffee (eds.), The Regulatory Aftermath of the Global Financial Crisis, Cambridge, Cambridge University Press, 2012, pp. 1-110.
- Flores Zendejas, J.H., “Financial Markets, International Organizations and Conditional Lending: A Long-Term Perspective”, in G. Mallard and J. Sgard (eds.), Contractual Knowledge: One Hundred Years of Legal Experimentation, Cambridge, Cambridge University Press, 2016, pp. 61-91.
- Giovanoli, M., "The International Financial Architecture and Its Reform after the Global Crisis", in M. Giovanoli (ed.), International Monetary and Financial Law: The Global Crisis, Oxford, Oxford University Press, 2010, pp. 3-39.
- Giovanoli, M., "A New Architecture for the Global Financial Market: Legal Aspects of International Financial Standard Setting", in A.H. Qureshi (ed.), International Economic Law: Critical Concepts in Law, Vol. 2, New York, NY, Routledge, 2011, pp. 195-251.
- Lupo-Pasini, F., “Financial Stability in International Law”, Melbourne Journal of International Law, 18 (2017), No. 1, pp. 45-70. [PDF]
- Meier, J.-M.A., “Regulatory Integration of International Capital Markets”, London Business School, Department of Finance, 2017. [PDF]
- Moloney, N., “The Legacy Effects of the Financial Crisis on Regulatory Design in the EU”, in Ferran, E. (ed.), The Regulatory Aftermath of the Global Financial Crisis, Cambridge, Cambridge University Press, 2012, pp. 111-202.
- Oei, Shu-Yi, “The Offshore Tax Enforcement Dragnet”, Emory Law Journal, 67 (2018), Forthcoming; Tulane Public Law Research Paper No. 17-2. [PDF]
- Posner, E.A. and, E.G. Weyl, E., “Benefit-Cost Analysis for Financial Regulation”, American Economic Review, 103 (2013), No. 3. [PDF]
- Ringe, W.-G., “The Irrelevance of Brexit for the European Financial Market”, Oxford Legal Studies Research Paper No 10/2017, 2017. [PDF]
- Shaffer, G., and M. Waibel, “The Rise and Fall of Trade and Monetary Legal Orders: From the Interwar Period to Today’s Global Imbalances”, in G. Mallard and J. Sgard (eds.), Contractual Knowledge: One Hundred Years of Legal Experimentation, Cambridge, Cambridge University Press, 2016, pp. 289-323. [PDF]
- Waibel, M., “Eurobonds: Legal Design Features”, University of Cambridge Faculty of Law Research Paper No. 37/2016, 2016. [PDF]
Periodicals, serial publications
- Butterworths Journal of International Banking and Financial Law
- International Financial Law Review
- Journal of International Banking Law and Regulation
1. Cross-Border Cooperation in Bank Resolution
Keywords: Asia, Association of South East Asian Nations, Banks, Insolvency, Economic co-operation, International financial law,
2. The Doing Business Index on Minority Investor Protection
Sciso, E., Accountability, Transparency and Democracy in the Functioning of Bretton Woods Institutions, Cham, Springer, 2017.View this title in our link resolver Plinklet
This book investigates the strengths and weaknesses – in terms of transparency and compliance with the democratic principle – of Bretton Woods Institutions, considering the most important innovations from the original framework achieved through the introduction of independent accountability and complaint mechanisms (the Inspection Panel and Independent Evaluation Office), but also due to relevant reforms in the internal governance of the International Monetary Fund and the new financial assistance tools. One of its main focuses is on evaluating the socio-economic impact of conditionality in the countries requiring financial assistance, acknowledging the need to strengthen social protection policies in the adjustment programs. In addition, emphasis is given to the effects of the “constitutionalization” of the Washington Consensus in the European Union, with the establishment of the so-called “Berlin-Brussels-Frankfurt Consensus.”
Tams, C.J. (et al.) (eds.), International Investment Law and the Global Financial Architecture, Cheltenham, Edward Elgar Publishing, 2017.View this title in our link resolver Plinklet
The global crises of the early 21st century have tested the international financial architecture. In seeking to ensure stability, governments have regulated financial and capital markets. This in turn has implicated international investment law, which investors have invoked as a shield against debt restructuring, bail-ins or bail-outs. This book explores whether investment law should protect against such regulatory measures, including where these have the support of multilateral institutions. It considers where the line should be drawn between legitimate regulation and undue interference with investor rights and, equally importantly, who draws it. Across the diverse chapters herein, expert international scholars assess the key challenges facing decision makers, analyse arbitral and treaty practice and evaluate ways towards a balanced system of investment protection in the financial sector. In doing so, they offer a detailed analysis of the interaction between investment protection and financial regulation in fields such as sovereign debt restructuring and bank rescue measures. Combining high-level analysis with a detailed assessment of controversial legal issues, this book will provide guidance for both academics and legal practitioners working in international economic law, international arbitration, investment law, international banking and financial law.
Paterson, S., and R. Zakrzewski (eds.), McKnight, Paterson, and Zakrzewski on the Law of International Finance (2nd ed.), Oxford, Oxford University Press, 2017.View this title in our link resolver Plinklet
This acclaimed and comprehensive work analyses the legal issues involved in international finance transactions operating under English law. The second edition thoroughly updates the book to take account of major developments in regulation, practice, and case law since the first edition published in 2008. The most notable development in the intervening period has been the global financial crisis of 2008-9, whose effects have profoundly changed the nature of international finance, and the new edition has been updated by a team of expert editors and contributors to reflect the post-crisis legal framework of international transactions. The new edition covers the many significant changes to Bank Regulation which have occurred since 2008. Major developments in conflicts of laws and cross-border insolvency are addressed, including the consequences of the decision in Rubin v Eurofinance. This edition also takes account of major litigation in the sovereign debt field, significant developments in the loan markets, and recent challenges with the provision of legal opinions, including the increasing need to provide opinions in cross-border transactions. Developments in financing structures in the aftermath of the financial crisis are examined. Significant litigation in the derivatives field (partly as a response to the collapse of Lehman Brothers Holdings Inc.) and amendments proposed by the International Swaps and Derivatives Association are also addressed. There is also coverage of further work on secured transactions following the Law Commission's and the City of London Law Society's Working Party's proposals.
Schillig, M, Resolution and Insolvency of Banks and Financial Institutions, Oxford, Oxford University Press, 2016.View this title in our link resolver Plinklet
This book provides a detailed analysis and critical assessment of the EU and US resolution regimes for banks and financial institutions on a comparative basis. The book analyses the EU legal framework under the Bank Recovery and Resolution Directive, and considers the challenges in national implementation through the two largest economies within the EU, Germany and the UK. The very influential laws of the US, (Securities Investor Protection Act 1970, and the Wall Street Reform and Consumer Protection Act: Dodd-Franck) are used as a comparative reference point. Through analysis of the new EU framework and of the more mature system in the US, the book considers whether and to what extent the EU framework and national regimes contribute to ensuring resolvability of financial institutions, how their efficacy may be increased with a view, in particular, to the resolution of cross border groups, and what the future may hold, especially in respect of a single European resolution authority.
Gleeson, S, and R. Guynn, Bank Resolution and Crisis Management: Law and Practice, Oxford, Oxford University Press, 2016.View this title in our link resolver Plinklet
The 2008 global financial crisis ushered in the biggest explosion in new bank regulation around the world since the Great Depression. Even more so than then, this new regulation has been coordinated on a global basis and reflects global standards as well as local idiosyncracies. Although governments and regulators have sought to put measures in place to prevent the failure of banks, they have acknowledged the need for measures to address what happens when banks fail or are threatened with failure and how to resolve such failure. Bank Resolution and Crisis Management: Law and Practice deals with the measures which European, U.S. and international law and policy makers have sought to put in place to deal with the threat of financial institutions failing, including enhanced supervision, early intervention and so called 'living wills'. Measures such as 'bail-out' (protecting private shareholders and creditors against losses) and 'bail-in' (imposing losses on shareholders and long-term creditors without causing contagion among short-term creditors) are discussed. The work includes comprehensive summaries and commentary on the EU Bank Recovery and Resolution Directive, the UK resolution laws including the Banking Act 2009 and amendments to that act, the Orderly Liquidation Authority under Title II of the U.S. Dodd-Frank Act, proposed new Chapter 14 to the U.S. Bankruptcy Code, and the bank resolution provisions of the U.S. Federal Deposit Insurance Act. The book also provides detailed commentary on the provisions in the Banking Act 2009 dealing with resolution, including discussion of the stabilisation, bank administration and insolvency powers. This includes analysis of secondary legislation such as the Partial Transfers Order. Special emphasis is given to the practical effect of such measures on financial transactions and their impact on arrangements, such as netting and set-off. There is also commentary on the Financial Services Investor Compensation Scheme and its role in returning money to the depositors in a failing bank. The special position of failing investment banks is also a feature of the book. Coverage includes analysis of the legislation adopted to address the particular issues that arose in the failure of Lehman Brothers and the resulting litigation, particularly that relating to the recovery of client assets.
Boccuzzi, G., The European Banking Union: Supervision and Resolution, Basingstoke, Hampshire, Palgrave Macmillan, 2016.View this title in our link resolver Plinklet
This volume examines the numerous changes to European legislation implemented for the prevention and management of banking crises. It examines the new framework for banking crises management, the institutional architecture of banking supervision and crisis management, the various powers of different authorities, tool for administrative actions, complexities of business and bankruptcy law, individual rights and legal guarantees.
Fox, D., and W. Ernst (eds.), Money in the Western Legal Tradition: Middle Ages to Bretton Woods, Oxford, Oxford University Press, 2016.View this title in our link resolver Plinklet
Monetary law is essential to the functioning of private transactions and international dealings by the state: nearly every legal transaction has a monetary aspect. Money in the Western Legal Tradition presents the first comprehensive analysis of Western monetary law, covering the civil law and Anglo-American common law legal systems from the High Middle Ages up to the middle of the 20th century. Weaving a detailed tapestry of the changing concepts of money and private transactions throughout the ages, the contributors investigate the special contribution made by legal scholars and practitioners to our understanding of money and the laws that govern it. Divided in five parts, the book begins with the coin currency of the Middle Ages, moving through the invention of nominalism in the early modern period to cashless payment and the rise of the banking system and paper money, then charting the progression to fiat money in the modern era. Each part commences with an overview of the monetary environment for the historical period written by an economic historian or numismatist. These are followed by chapters describing the legal doctrines of each period in civil and common law. Each section contains examples of contemporary litigation or statute law which engages with the distinctive issues affecting the monetary law of the period. This interdisciplinary approach reveals the distinctive conception of money prevalent in each period, which either facilitated or hampered the implementation of economic policy and the operation of private transactions.
Brummer, C., Soft Law and the Global Financial System: Rule Making in the 21st Century (2nd. ed.), New York, NY, Cambridge University Press, 2015.View this title in our link resolver Plinklet
This book explains how international financial law 'works' and presents an alternative theory for understanding its purpose, operation, and limitations. Drawing on a close institutional analysis of the post-crisis financial architecture, it argues that international financial law is often bolstered by a range of reputational, market, and institutional mechanisms that make it more coercive than classical theories of international law predict. As such, it is a powerful, though at times imperfect, tool of financial diplomacy. Expanded and revised, the second edition of Soft Law and the Global Financial System contains updated material as well as an extensive new chapter analyzing how international standards and best practices have been operationalized in the US and EU in the wake of the financial crisis. It remains an essential tool for understanding global soft law for political scientists, lawyers, economists, and students of financial statecraft.
Weiss, F., and A.J. Kammel, The Changing Landscape of Global Financial Governance and the Role of Soft Law, Leiden, Brill Nijhoff, 2015.View this title in our link resolver Plinklet
This publication provides interdisciplinary perspectives on the changing landscape of global financial governance by exploring the impact and role of soft law, directly or as a precursor of hard law, pertaining to financial governance. Since the shaping of financial governance impacts national, regional and global levels of regulation, different views and arguments contribute to the ongoing discussions about financial regulation. Against this background, this book brings together perspectives of economists and lawyers who have not rallied to one or the other popular call for more regulation as a panacea for the prevention of future global financial crises, calls which have all but drowned out more nuanced scientific
debates. Instead, their analysis of aspects of remedial regulatory policy prescriptions already made or proposed demonstrates that carefully designed soft law can be deployed as a valuable method or tool of mediation between the unrestrained autonomy of dysfunctional markets and overzealously crafted hard law.
Porter, T., Transnational Financial Regulation after the Crisis, London, New York, Routledge, Taylor and Francis Group, 2014.View this title in our link resolver Plinklet
The global financial crisis that began in 2007 was the most destructive since the 1930s. The rapid spread of the crisis across borders and the complexity of these cross-border linkages highlighted the importance for authorities of working together in responding to the crisis. This book examines the transnational response that relied heavily on a set of relatively informal transnational regulatory groupings that had been constructed over previous decades. During the crisis these arrangements were made stronger and more inclusive, but they remain very complex. Thousands of pages of new rules have been created by various transnational bodies, and the implementation of these rules relies heavily on domestic law and regulation and private rules and practices. This book analyses this complex response, showing that its overly technical and incremental character, the persistence of tensions between transnational processes and state-centred politics, and the ongoing power of private actors, have made the regulatory response fall short of what is needed.
Zimmermann, C.D., A Contemporary Concept of Monetary Sovereignty, Oxford, Oxford University Press, 2013.View this title in our link resolver Plinklet
Monetary sovereignty is a crucial legal concept dictating that states have sovereignty over their own monetary, financial, and fiscal affairs. However, it does not feature as part of any key instruments of international law, including the Articles of Agreement of the International Monetary Fund. Rather, it has remained a somewhat separate notion, developed under contemporary international law from an assertion of the former Permanent Court of International Justice in 1929. As a consequence of globalization and increasing financial integration and a worldwide trend towards the creation of economic and monetary unions, the principle of monetary sovereignty has undergone significant change. This book examines this evolution in detail, and provides a conceptual framework to demonstrate what this means for the legal and economic challenges faced by the international community. The book examines the historic origins and evolution of the concept of monetary sovereignty, putting it into the context of broader concepts of sovereignty. It argues that monetary sovereignty remains relevant as a dynamic legal concept with both positive and normative components. It investigates the continuing hybridization of international monetary law resulting from changes to its formal and material sources. It then examines the complex phenomenon of exchange rate misalignment under international monetary and trade law, and the increasing regionalization of monetary sovereignty, notably in light of the European sovereign debt crisis. Finally, it assesses the role the concept of monetary sovereignty can play in the reorganization of international finance following the recent global financial crisis.
Vultures Swooping on Debt Carcasses
Vulture funds are an aspect of sovereign debt, which has become an increasingly important topic in the aftermath of the current crisis. In this third blog in a series of Peace Palace Library Blogs about the Global Financial Crisis, I will highlight the ‘problem’ of vulture funds. What happened with vulture funds in the Argentina case and will it set a precedent for the rest of the (developing) world? Why do these vultures like debt carcasses so much?Read more
Tax Havens: Sunny Islands?
‘A tropical, sunny island’, like Cayman, is the first thing that pops on our minds when we think of tax havens. Tropical islands are well-known for secrecy jurisdictions. But are they the only players in the so called ‘secrecy game’? And do tax havens influence the current global financial crisis? Are they worth a holiday?Read more
Cyprus Crisis: Troika go Home?
Lately everyone is turning their eyes to Cyprus. The small Mediterranean country is the latest victim of Europe’s debt crisis, in which several members of the Eurozone were brought to the brink of bankruptcy by a combination of highly indebted banks and unsustainable sovereign debts. Last month, a troika of the European Commission, the European Central Bank and the International Monetary Fund agreed on a rescue plan in respond to Cyprus’ need for a bailout.Read more
P.R.I.M.E. Finance : Open for business!
On 16 January 2012, the P.R.I.M.E. Finance Foundation has started its activities with an opening conference followed by seminars on Dispute Resolution in the Financial Markets in the Peace Palace in The Hague. The Foundation oversees the activities of its Panel of Recognized International Market Experts in Finance (P.R.I.M.E. Finance), chosen for their relevant experience in financial market practice or […]Read more
Germany and Liechtenstein: Tax Evasion Dispute!
The German Federal Intelligence Service paid an informant some 5 million euros for a list with the names of account holders from a Liechtenstein Bank. German investigations thereupon revealed a massive tax evasion scandal! Hundreds of people in Germany are suspected of having stashed away millions of euro in Liechtenstein to escape taxes in Germany.
The tiny Alpine principality of Liechtenstein, a major European tax haven, accused the Germans of attacking its sovereignty and of breaking the law by buying secret (stolen) data and sending in spies to uncover the scandal.
The OECD in Paris criticized the Liechtenstein practice of allowing foreigners to open trusts there anonymously by registering them through a local attorney or trustee.
The policy of “excessive” secrecy of banks in Liechtenstein might have attracted many rich people and more countries are interested in the data bought by the German intelligence agents.
Interestingly a lot of literature on Liechtenstein is about financial matters, trusts, anti-money laundering issues and the transparency of its fiscal regime. Read more on Liechtensteinand its special place in Europe.Read more