Towards a Formalistic Approach of Good Faith in Comparative Contract: Regulation of Banks in the European Union, the United States, and China: Banking Law in Comparative Context
Authors: Hutukka Päivi 
Published: February 2025

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mso-bidi-font-family:TimesNewRomanPSMT"This study presents the main features
of regulation of banks in the European Union,o:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"the United States, and China. Each
regime is reviewed in its historical context, exploringo:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"stages leading to the given
jurisdiction’s contemporary regulation of banks. Aftero:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"mapping the differences and
similarities between regulation of banks in the Europeano:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"Union, the United States, and China,
the article identifies possible reasons for theo:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"detected divergence and convergence,
employing a comparative law approach drawingo:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"on multidisciplinary insights. The
article reveals that the main differences betweeno:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"regulation of banks in the three
jurisdictions lie in the historical development, stanceso:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"on universal banking, aversion to
centralised economic and supervisory power, aso:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"well as in the structure of the banking
sector. The divergence stems from differenceso:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"in historical, political, institutional,
and economic factors between the jurisdictions.o:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"Similarities in regulation of banks are
evident in similar objectives, financial safetyo:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"nets comprising a central bank and
deposit insurance scheme, and special rules regulatingo:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"foreign banks. Similarities are rooted
in the underlying rationale for regulation,o:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"crisis exposure, external pressure
through international harmonising efforts and standards,o:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"as well as China’s deliberate
transplanting of Western models into its domestico:p/o:p/spanp class="MsoNormal" style="text-align: justify; margin-bottom: 0.0001pt; line-height: normal;"span style="font-size:10.0pt;font-family:"TimesNewRomanPSMT",serif;
mso-bidi-font-family:TimesNewRomanPSMT"banking regulationo:p/o:p/span

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