Financial regulations don't just spread from core economies — they diffuse through intricate cross-border relationships.

* Data & Methods: A novel dataset analyzing Basel II adoption across 90+ jurisdictions reveals subtle network effects.

* Key Findings: Four primary banking connections shape regulatory decisions: bank operations, regulator networks, capital competition, and investor links.

Regulators in peripheral countries aren't making isolated choices; their hands are guided by international precedents through these specific linkages. This nuanced analysis demonstrates that the nature, not just extent, of financial ties matters most for regulatory alignment.