Document Type

Book Chapter

Publication Date

2015

DOI

https://doi.org/10.1093/acprof:oso/9780198723202.003.0025

Abstract

The global financial crisis demonstrated the vulnerability, if not failure, of existing governance structures for financial markets. Even if it is true that financial crises cannot be avoided, there may be room for improving existing structures. This chapter suggests that such an improvement might lie in switching from exclusive, hierarchical, and coercive forms of governance to inclusive, horizontal, cooperative ones—and uses the shorthand ‘contractual governance’ for the latter. Starting from the presumption that new forms of governance are frequently born in crisis, the chapter analyses several responses to the crisis and asks whether they display features of alternative forms of governance. It finds that some features of contractual governance can be found in all response strategies, but that in the end only one, the European Banking Coordinative Initiative, lives up to a full-fledged contractual governance regime.

Disciplines

Business Organizations Law | Comparative and Foreign Law | Law

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