Rethinking Bank Regulation: Till Angels Govern

Cover......Page 1
Half-title......Page 3
Rethinking Bank Regulation: Till Angels Govern......Page 5
Copyright......Page 6
Dedication......Page 7
Contents......Page 9
Figures, Tables, And Appendices......Page 11
Preface......Page 15
1.a. Motivation......Page 19
1.b. Objectives And Contributions......Page 21
1.c. Key Findings: A Brief Synopsis......Page 28
1.d. Guide To The Book......Page 34
Two - Contrasting Approaches To Bank Regulation......Page 36
2.a.1. Public Interest Approach......Page 39
2.a.2. Private Interest View Of Regulation......Page 52
2.b. Bank Regulation: Pros And Cons......Page 64
2.b.1. Restrictions On Banks, And On Links To Commerce......Page 65
2.b.2. Entry Restrictions......Page 67
2.b.3. Capital Requirements......Page 70
2.b.4. Supervisory Powers......Page 73
2.b.5. Safety Net Support......Page 75
2.b.6. Market Monitoring......Page 77
2.b.7. Government Ownership......Page 79
2.c. The Basel Committee And Regulatory Convergence......Page 81
2.d. Conclusion......Page 92
3.a. Overview......Page 93
3.b. Structure, Scope, And Independence Of Regulation And Supervision......Page 101
3.b.1. Single Bank Supervisor Or Multiple Bank Supervisors......Page 102
3.b.2. Bank Supervisory Role Of The Central Bank......Page 103
3.b.3. Scope Of Supervisory Authority......Page 110
3.b.4. Independence Of Supervision......Page 114
3.c. What Is A “bank”?......Page 120
3.c.1. Scope Of Bank Activities......Page 121
3.c.2. Formation Of Financial Conglomerates......Page 124
3.d.1. How Liberal Are Entry Requirements Into Banking?......Page 128
3.d.2. How Stringent Are Capital Requirements?......Page 133
3.d.3. What Powers Do The Supervisory Authorities Possess?......Page 139
3.e. Explicit Deposit Insurance Schemes......Page 150
3.f.1. Private Monitoring......Page 154
3.f.2. Does External Governance Play An Important Role?......Page 157
3.g. Does Bank Ownership Type Affect The Choice Of Regulations And Supervisory Practices?......Page 166
3.h. Forces For Greater Harmonization Of Regulation And Supervision Among Countries......Page 179
3.h.1. European Union......Page 180
3.h.2. World Trade Organization......Page 185
3.h.3. Offshore Financial Centers......Page 191
4.a.1. Goals......Page 196
4.a.2. Boundaries......Page 198
4.b.1. Data And Correlations......Page 203
4.b.2. Bank Development And Regulations: Regression Methodology......Page 208
4.b.3. Bank Development And Regulations: Regression Results......Page 213
4.c.1. Definitions And Methodology: Systemic Crises......Page 231
4.c.2. Bank Supervision, Regulation, And Stability: Results......Page 232
4.d.1. Bank Supervision, Regulation, And Bank Efficiency: Issues, Data, And Methods......Page 242
4.d.2. Bank Supervision, Regulation, Efficiency: Regression Results......Page 246
4.e.1. Bank Policies And Lending Integrity: Concepts, Data, And Methods......Page 253
4.e.2. Bank Policies And Lending Integrity: Results......Page 258
4.f.1. Supervision, Regulation, Laws, And Ownership: Concepts, Data, And Methods......Page 263
4.f.2. Supervision, Regulation, Laws, And Ownership: Results......Page 268
4.g. Summary Of Results......Page 270
5.a. Recap And Motivation......Page 276
5.b.1. Mexico......Page 280
5.b.2. The United States......Page 283
5.c. Conceptual Framework......Page 288
5.c.1. Accidental Or Limited Information Views Of Bank Supervision And Regulation......Page 289
5.c.2. A Coasian Theorem Of Bank Supervision And Regulation......Page 293
5.c.3. Politics: A Social Conflict View Of Bank Supervision And Regulation......Page 296
5.d.1. Indicators Of Bank Regulation, Supervision, And Political Systems......Page 304
5.d.2. Instrumental Variables: Extracting The Exogenous Part Of Political System Indicators......Page 309
5.d.3. Methodology......Page 313
5.d.4. Cross-country Regression Results......Page 315
5.e. Summary Remarks......Page 324
6.a. Approach And Context......Page 325
6.b. Lessons And Implications......Page 327
Appendices......Page 335
Appendix 1 Guide To The 2003 World Bank Survey......Page 337
Appendix 2 Quantification Of Different Dimensions Of Bank Regulation And Supervision......Page 349
Appendix 3 Key International Standards For Sound Financial Systems......Page 376
Appendix 4 Core Principles For Effective Banking Supervision......Page 377
Appendix 5 Information On Different Dimensions Of Bank Regulation And Supervision: Averages By Income Level And Development Status......Page 379
Appendix 6 Information On Different Dimensions Of Bank Regulation And Supervision: Averages By Region......Page 383
Appendix 7 Information On Different Dimensions Of Bank Regulation And Supervision: Averages By Economic And Currency Unions Status......Page 388
Appendix 8 Information On Different Dimensions Of Bank Regulationand Supervision: Averages By Oecd, Wto, And Offshore Status......Page 392
Appendix 9 Country Names And Country Codes......Page 396
References......Page 397
Index......Page 423