By Sara Konoe

This chapter examines Germany and Japan’s powers in terms of global banking regulation through the case of the Basel Accords. Despite the fact that both countries can be perceived as “great powers” due to their world-class financial resources and competitiveness, their positions in global banking regulation have been second-tier and below those of the US and the UK. Moreover, when one looks at the negotiation process of the Basel Accords, the positions of Japan and Germany seem to be better described as “followers” rather than “leaders,” as they often failed to set the agenda or were forced to accept an overall framework put together by other major countries, despite their success in gaining concessions within the framework. In particular, compared to Germany—the country that could put forth its own agenda in cooperation with other EU member states—Japan found fewer close allies to support its negotiation power.

Rowman & Littlefield, 2020

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