Author: Publisher:
ISBN: 9781910627204
Category :
Languages : en
Pages :
Book Description
Abolition of Deposit Insurance
Author: The Abolition of Deposit Insurance. A Modest Proposal for Banking Reform
Author: Andreas WesemannPublisher:
ISBN:
Category :
Languages : en
Pages : 124
Book Description
After 40 years of increasingly frequent, increasingly severe banking crises it is time to review the most sacrosanct component of the regulatory regime for banks: deposit insurance. This paper sets out a proposal for its abolition in the UK, consisting of (a) an announcement that all deposit insurance will be abolished after two years, while extending the preferential ranking of insured deposits introduced in the Banking Reform Act 2013 to all relevant, uninsured deposits; (b) legislation banning any and all compensation paid to depositors as a result of losses they may suffer in the wake of a bank insolvency; (c) an announcement that NS&I, the state-owned UK savings bank, would henceforth offer savings and current accounts to everyone; and (d) a requirement for all deposit-taking banks to publish prominently their capital / leverage ratios in comparison with NS&I. At the same time, the Basel 3 regulatory regime (i.e. the CRD IV legislative package and the associated laws and rules effected to implement and apply it in the UK) would be abolished (this is made easier by Brexit): capital regulation is the price banks pay for sovereign insurance of their largest creditors, and once that is abolished, the logic for a sovereign capital adequacy regime disappears. Following these reforms, risk-averse customers would have recourse to a zero-risk banking option offered by NS&I. Existing banks would find that they will have to increase their capital levels significantly, probably in excess of CRD IV requirements, in order to be able to compete and retain customers. Super-seniority of deposits in banks' capital structure would mean that losses would have to be very high - far higher than those experienced during the great financial crisis - before retail depositors are exposed to losses. I am arguing that such a banking system could stimulate lower levels of leverage, a better distribution and pricing of risk, and therefore more robust economic performance in the UK.
Crisis and Response
Author: Federal Deposit Insurance CorporationPublisher:
ISBN: 9780966180817
Category :
Languages : en
Pages :
Book Description
Crisis and Response: An FDIC History, 2008¿2013 reviews the experience of the FDIC during a period in which the agency was confronted with two interconnected and overlapping crises¿first, the financial crisis in 2008 and 2009, and second, a banking crisis that began in 2008 and continued until 2013. The history examines the FDIC¿s response, contributes to an understanding of what occurred, and shares lessons from the agency¿s experience.
The Chicago Plan Revisited
Author: Mr.Jaromir BenesPublisher: International Monetary Fund
ISBN: 1475505523
Category : Business & Economics
Languages : en
Pages : 71
Book Description
At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.
The Chicago Plan & New Deal Banking Reform
Author: Ronnie J. PhillipsPublisher: M.E. Sharpe
ISBN: 9781563244698
Category : Business & Economics
Languages : en
Pages : 254
Book Description
This work presents a comprehensive history and evaluation of the role of the 100 percent reserve plan in the banking legislation of the New Deal reform era from its inception in 1933 to its re-emergence in the current financial reform debate in the US.
Annual Report of the Federal Deposit Insurance Corporation for the Year Ending ...
Author: Federal Deposit Insurance CorporationPublisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 422
Book Description
Beginning with 1981, merger decisions of the Corporation are published separately as vol. 2 of the Annual report.
Managing the Crisis
Author: Publisher:
ISBN:
Category : Bank failures
Languages : en
Pages : 248
Book Description
Deals with the result of a study conducted by the FDIC on banking crisis of the 1980s and early 1990s. Examines the evolution of the processes used by FDIC and RTC to resolve banking problems, protect depositors and dispose of the assets of the failed institutions.
Estimating the Costs of Financial Regulation
Author: Mr.Andre SantosPublisher: International Monetary Fund
ISBN: 147551008X
Category : Business & Economics
Languages : en
Pages : 43
Book Description
Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
Banking Reform
Author: Great Britain. TreasuryPublisher: The Stationery Office
ISBN: 9780101854528
Category : Business & Economics
Languages : en
Pages : 64
Book Description
Banking reform is the second key pillar of the Government's programme for reform of the financial sector to address the weaknesses exposed by the financial crisis of 2007-09. The first pillar of this programme, reform of financial services regulation, has been legislated in the Financial Services Act that received Royal Assent in December 2012 (2012 Ch. 21, 9780105421122). The Government is now legislating to reform the structure of the UK banking system, through the Financial Services (Banking Reform) Bill (HCB 130, session 2012-13, ISBN 9780215053794) which implements key recommendations of the Independent Commission on Banking, including ring-fencing retail deposits from wholesale banking activities and depositor preference. This document accompanies introduction of the Bill and includes the Government response to the first report of the Parliamentary Commission on Banking Standards (PCBS), which conducted pre-legislative scrutiny on the draft Bill. The response explains where the Government has amended the Bill and includes and impact assessment for the Bill, along with the opinion of the independent Regulatory Policy Committee
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