Approaches to the regulation of internationally active banks As I mentioned at the outset, international banking raises the question of who should do the regulating, as well as the question of what regulation is appropriate. The two questions are related, of course. As I will explain shortly, the nature of regulations in part depends upon the perspective and aims of the regulator.
There are essentially four models, each of which has benefits and shortcomings. 2  2  For an example, see Stijn Claessens, Omar Hassib, and Neeltje van Horen (2015), “The Role of Foreign Banks in Trade,” mimeo, (Washington: Board of Governors of the Federal Reserve System and De Nederlandsche Bank, March).