While many empirical studies on restorative justice conferencing have been conducted in the context of ‘what works’, research on ‘how it works’ is scarce. Little is known about how, in what conditions and for whom restorative justice conferencing ‘works’. In this article, I aim to fill this gap in the literature by developing a concept of readiness. It refers to participants’ attitudes and emotional dispositions towards, and knowledge about, restorative justice conferencing and the other parties prior to the face-to-face dialogue process. I suggest that the concept of readiness may be a key independent variable to understand how restorative justice conferencing works because it reminds us that a restorative journey may begin before a face-to-face dialogue between participants take places. This article concludes by offering how it can be used in research on restorative justice conferencing.

In the aftermath of the 2007 global financial crisis, regulators have agreed a substantial tightening of prudential regulation for banks operating in the traditional banking sector (TBS). The TBS is stringently regulated under the Basel Accords to moderate financial stability and to minimise risk to government and taxpayers. While prudential regulation is important from a financial stability perspective, the flipside is that the Basel Accords only apply to the TBS, they do not regulate the shadow banking sector (SBS). While it is not disputed that the SBS provides numerous benefits given the net credit growth of the economy since the global financial crisis has come from the SBS rather than traditional banking channels, the SBS also poses many risks. Therefore, the fact that the SBS is not subject to prudential regulation is a cause of serious systemic concern. The introduction of Basel IV, which compliments Basel III, seeks to complete the Basel framework on prudential banking regulation. On the example of this set of standards and its potential negative consequences for the TBS, this paper aims to visualise the incentives for TBS institutions to move some of their activities into the SBS, and thus stress the need for more comprehensive regulation of the SBS. Current coronavirus crisis forced Basel Committee to postpone implementation of the Basel IV rules – this could be perceived as a chance to complete the financial regulatory framework and address the SBS as well.