Legal Framework of Prudential Regulation and Liberalization of Banking Services in World Trade Organization

Document Type : Original Article


1 (Associate Professor of Law, Shahid Beheshti University)

2 PhD Candidate of international Trade and investment lawShahid Beheshty University.



Trade liberalization is one of the rules of the World Trade Organization. Prudential regulation is done for financial stability by countries. There should be a legal framework for the World Trade Organization that liberalizes banking services but does not damage financial stability. Based on an analytical descriptive approach data are gathered from the library. According to the article, the World Trade Organization has tried to balance between the liberalization of banking services and prudential regulation and the trade-off between financial stability and the economy. Likewise, after many years of debate banking services liberalization is accepted as a rule and prudential regulation is an exception. 


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