Commercial Banking in Transition: A Cross-Country Analysis (Palgrave Macmillan Studies in Banking and Financial Institutions)

Foreword
Contents
Notes on Contributors
List of Figures
List of Tables
1 Introduction
	1 Aims and Pillars of the Book
	2 Structure of the Book
	3 Looking Ahead
Part I The European Union
2 Intermediaries’ Model in Banking and Finance and the Treatment of Fintech in the European Union: A Critical Approach
	1 Introduction
	2 The European Model of Intermediation in Bank and Finance Markets
	3 Fintech and Circumvention of the Intermediaries’ Model
		Internet and the Availability of Information
		Binding Two Parts of the Market Through a Sole Intermediary
		The End of Mandatory Intermediaries in the Blockchain System
	4 Approaches of European Authorities
		Opening New Services and Diminishing the Scope of the Monopoly
		Offering a More Direct Approach Through Exemptions
		Extending Monopolies to New Market and Technics
	5 Conclusions
3 FinTech and Competition Regulatory Concerns in the EU Banking Business Framework
	1 Introduction
	2 From the Liberalization Process for Commercial Banks to the project of a Digital Euro
	3 Price and Non-Price Competition Among Card-Based Payment Systems
	4 Collecting and Sharing Credit Data
	5 Conclusions
4 Prudential Regulation Policy Responses to Financial Technological Innovations: The Future for Banks and Crypto-Finance?
	1 Introduction
	2 New Market Opportunities for Mainstream Commercial Banks in Crypto-Finance?
		The Basel Committee’s Prudential Policy for Crypto-Assets
		The Contest of Regulatory Objectives
		What Potential Business Lines in Crypto-Finance for Banks?
	3 Secured Crypto Lending by Banks?
		Law and Policy Reform for Security Aspects of Crypto Collateral
		Recognition as Financial Collateral
		Reform in Prudential Treatment for Risk Mitigation
	4 Conclusion
5 Digitalizing the Commercial Banking Business Model: Vanishing Bank Branches and the Risks of Financial Exclusion of the Elderly
	1 Introduction
	2 Access to Financial Services by the Elderly
	3 The Risks of Financial Exclusion of the Elderly
	4 The Current State of EU Law: The Case for Legislative Intervention
	5 Potential Legislative Strategies
	6 Conclusion
6 The ‘Game Changer’ in the Euro Area: Banking Union and Commercial Banking
	1 Introduction
	2 The Establishment of Banking Union
	3 The Functioning of an Incomplete Banking Union
	4 Banking Union at the Test of the Covid Pandemic
	5 Conclusion
7 The Financing of Problem Banks: Critical Issues and Challenges Ahead
	1 Introduction
	2 Emergency Liquidity Assistance: Definition and Requirements
		Critical Aspects of ELA and the Rationale for Vesting Central Banks with ELA Functions
		Central Banking in the Euro-Area and ELA Provision in the Banking Union
		The Inconsistencies of the Framework Currently in Place
	3 Deposit Guarantee Schemes
		DGSs Optional Measures to Prevent a Bank’s Failure
		DGSs Optional Measures in the Context of a Bank’s Liquidation
		Legal Obstacles to the Implementation of the DGSs’ Optional Measures
	4 Concluding Remarks
8 The Review of the EU Bank Crisis Management and Deposit Insurance Framework
	1 Introduction
	2 Bank Resolution in the EU and the United States
	3 Building up MREL Capacity
	4 Review of the Crisis Management and Deposit Insurance Framework
	5 Cooperative and Savings Banks
	6 Why the Completion of the EU Capital Markets Union Matters
	7 Cooperation Is Key for Success in Resolution Planning
	8 Concluding Remarks
9 Sustainable Commercial Banking in European Union Law: A Renewed Mandate for Commercial Banks?
	1 Introduction
	2 Sustainability as an Object of Disclosure: Commercial Banks’ Sustainability Reporting
		Commercial Banks Subject to Sustainability Reporting: Towards an Expanded Subjective Scope
		EU Binding Common Reporting Standards and the Limits to Commercial Banks’ Sustainability Reporting Discretion
		The Potential of Trusteeship Strategies on the Quality of Commercial Banks’ Sustainability Reporting
	3 Sustainability as an Objective to be Considered (and Pursued?) by Commercial Banks
		The CRD VI Proposal: Inward-looking Sustainability and Directors’ Duty of Care in Commercial Banks
		The CSDD Proposal: Outward-looking Sustainability, Directors’ Duties and the Emergence of an EU-Wide Corporate Objective for Commercial Banks
	4 Summary and Concluding Remarks
10 Commercial Banks and Competition Concerns—SDG Policy Priorities
	1 Introduction
	2 The Ambition and the Struggles: The “How to” Towards Sustainable Commercial Banking
		General Considerations—Internal Challenges
		Specific Challenges with ESG Disclosures and Standardization of Sustainability Reporting—The Multitude of Regulative Sources
		NLB Sustainability Roadmap 2022–2023: Developing a Climate-Conscious Transition Strategy
	3 Conclusion
Part II The Anglo-Saxon Systems
11 Central Bank Digital Currency and the Agenda of Monetary Devolution
	1 Introduction
	2 The Justifications for Creating a CBDC
	3 The Agenda of Monetary Devolution
	4 Sovereign Money and the Fragility of Private Money
		Devolution of Monetary Powers as a Response
	5 The Mechanics
	6 The Choice at Hand
	7 Politics in the Origin
	8 Conclusion
12 Open Banking in the UK: A Co-opetition Scenario for Innovation and Evolution in the UK Retail Banking Sector
	1 Introduction
	2 Background
		The Problem: CMA Market Investigation
		The Solution: Retail Banking Market Investigation Order 2017
	3 Open Banking: Co-opetition and Innovation in the UK Retail Banking
		Open Banking
		CMA9
		Co-opetition and CMA 2017 Order
		Evolution of the UK Retail Banking Sector
			Competition and Changing Market Structure
			Open Banking Technology and Innovation
			Customer Engagement: From Switching to Navigating Ecosystems
	4 Conclusions: Co-opetition Scenario for Policy-Led Innovation and Evolution in Retail Banking
13 Rethinking Crypto-Regulation for Crypto-Investors in the UK
	1 Introduction
	2 Defining Crypto-Assets
	3 The Current UK Regulatory Framework for Crypto-Assets
	4 Risks to Retail Investors and a Proposal for Protection
	5 Conclusion
14 Cross-Border Recognition of Foreign Resolution Actions: The Statutory Regime in the United Kingdom
	1 Introduction
	2 The Rationale for a Statutory Recognition Regime
		The UK Position Before the 2007–2008 Financial Crisis
		The FSB Key Attributes of Effective Resolution Regimes
		Jurisdictional Implementation of FSB Key Attribute 7
	3 Circumstances Where Recognition Will Be Granted
		The Definition of “Third-Country Resolution Action”
		“Broadly Comparable”: Objectives and Anticipated Results
	4 Refusal of Recognition (in Whole or in Part)
		Adverse Impact on UK Financial Stability
		Independent Action Is Necessary to Resolve a UK Branch
		Discrimination Against UK Creditors
		Material Fiscal Implications
		Recognition Would Be Contrary to the ECHR
		Exercising Stabilisation Powers to Support a Foreign Resolution
	5 The Process and Legal Effect of Recognition
		The Time Frame for Taking a Decision
		The Recognition Instrument and Its Effect
		Duty to Give Reasons?
		Challenging a Recognition Decision
	6 Concluding Remarks
15 The Impact of Climate Change on the Economy and Financial System: Legal Aspects of the Bank of England’s Response
	1 Introduction
	2 The Legal Framework for Combating Climate Change
		The United Nations Framework Convention on Climate Change (the “Convention”)
		The Paris Agreement (the “Agreement”)
		R (Application of Friends of the Earth Limited and Others) v Heathrow Airport Limited (the “Heathrow Case”)
		Climate Change Act 2008 (the “CCA”)
	3 The Relevance of Climate Change to the Bank of England’s Remit and the Objectives of Its Statutory Committees
		The Monetary Policy Committee (“MPC”)
		The Financial Policy Committee (“FPC”)
		The Prudential Regulation Committee (“PRC”)
	4 Actions Taken by the Bank in Response to Climate Change
		Ensuring the Financial System Is Resilient to Climate-Related Financial Risks
		Supporting Firm-Led Collaboration to Enable an Orderly Transition to Net Zero
		Supporting an Orderly Transition to Net-Zero Emissions: Contributing to a Coordinated International Approach to Climate Change
		Demonstrating Best Practice Through Its Own Operations
	5 Concluding Remarks
Part III China and South Korea
16 Chinese Commercial Banks and Fintech-Competition and Collaboration
	1 Introduction
	2 Structural Overview of China’s Banking Sector
	3 Fintech Industry in China
		Mobile Payments
		Money Market Funds
		Online Lending
	4 Fintech Challenges and China’s Big Banks
	5 Fintech Challenges and Small and Medium-sized Banks (SMBs)
	6 Concluding Remarks
17 Fintech and Banking Reform: A Perspective from China
	1 Introduction
	2 Fintech-Driven Banking Reform
		Online Finance
			Electronic Payment
			Offline Banking Business Moved to Online Processing
			Online Loans
		Trade Finance Blockchain Platform
			Trade Finance Blockchain Platform Led by Banking Consortium
			Trade Finance Blockchain Platform Led by Public Sector
		Data Governance in Banks
	3 The Influence and Reform of Central Bank Digital Currencies in China (e-CNY) to Commercial Banks
		The Theoretical Basis of Central Bank Digital Currency
			The Theoretical Connotation of Digital Currency
			Classification and Characteristics of Central Bank Digital Currency
		The Influence Mechanism of Central Bank Digital Currency on Commercial Banks in China
			The Positive Influence of China\'s Central Bank Digital Currency on Commercial Banks
			The Negative Influence of China\'s Central Bank Digital Currency on Commercial Banks
		The Reform Path of China\'s Commercial Banks Under the Wave of Central Bank Digital Currency
			Promoting the External Regulation and Internal Governance of Commercial Banks Orderly
			Promoting the Product Application and Comprehensive Business Development of Commercial Banks
			Accelerating the Strategic Transformation of Commercial Banks from Offline Outlets to Online Platforms
			Strengthening the Construction of Information Systems for Commercial Banks and Promoting the Upgrading of Financial Infrastructure
	4 Conclusion
18 Prudential Regulation of the Banking-Like Business of Fintech Companies in China
	1 Introduction
		Definition of FinTech
		The Application and Impact of FinTech on the Banking Industry
			Application of FinTech in Banking Industry
			The Impact of FinTech Companies on Banking
		The Rationality of Choosing China as a Sample Study
	2 Banking-Like Business Among China’s FinTech Companies
		Overview of China’s FinTech Companies
			Ant Financial
			Tencent
			Other FinTech Companies
	3 Summary of FinTech Company’s Banking-Like Business
	4 Pros and Cons of FinTech Companies Engaging in Banking-Like Business
		Positive Effect
		Potential Risks
			Liquidity Risk
			Non-Performing Loan Risk
			Regulatory Arbitrage
			Oligopoly
	5 Prudential Regulation on Banking-Like Business of FinTech Companies
		The Necessity of Prudential Regulation on FinTech Companies
		China\'s Current Regulatory Approach to FinTech Companies’ Banking-Like Business
		Improving Prudential Regulation of FinTech Companies’ Banking-Like Business
			Regulatory Sandbox and Authorization
			Preventing Liquidity Risk
			Reducing Regulatory Arbitrage
			Applying RegTech in FinTech Regulation
			Enhancing Regulatory Cooperation
	6 Conclusion
19 Recent Changes and Prospects of Banking Services Regulations and Supervision in Korea
	1 Introduction
	2 FinTech Innovations and the Changes of Banking Business and Supervision in Korea
		BigTechs in Korea Competing with Commercial Banks
		Changes of the Legal Framework for Data Protection
		Recent Responses of Commercial Banks in Korea
		Ongoing Debates Surrounding Introduction of Pseudo-Banking Business
		Issues to Be Discussed More in the Future
	3 Pandemic Emergency Financing and Debt Relief in Korea and the Implication on Banking Industry
		Pandemic Emergency Financing and Debt Relief in Korea
			The Need of Moratorium or Debt Relief in Korea
			Korean Government Debt Relief Measures During the Covid-19 Pandemic
		Implication on Banking Industry and Supervision
			Increase of Debt Level
			Credit Crunch Risk
			Implication to the Supervision
	4 SDGs in Korean Banking Business
		The Impact on Baking Business Model by ESG
		Current SDGs Supervision on the Banking Industry and the Prospect of SDGs Regulation
	5 Conclusion
Part IV Looking Ahead
20 Final Remarks
Index