Bank Capital Regulation by Enforcement PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Bank Capital Regulation by Enforcement PDF full book. Access full book title Bank Capital Regulation by Enforcement by Julie Andersen Hill. Download full books in PDF and EPUB format.
Author: Julie Andersen Hill Publisher: ISBN: Category : Languages : en Pages : 64
Book Description
Improving commercial bank capital requirements has been a top priority on the regulatory agenda since the beginning of the 2008 financial crisis. Unfortunately, some of the information necessary to make informed decisions about capital regulation has been missing. Existing regulations establish numerical capital requirements. Regulators, however, have significant discretion to set higher capital requirements for individual banks. In considering necessary reforms, regulators often focus on specific numerical requirements, but sometimes ignore the structure of the regulations and discretionary enforcement efforts. Without clear information about discretionary capital enforcement actions, it is impossible to make informed judgments about the current capital regulation system. This Article provides a more complete picture of discretionary capital enforcement. It reports an empirical study of all publicly available formal capital enforcement actions between 1993 and 2010. The data, compiled from more than 2300 enforcement actions, reveal four significant insights. First, the number of capital enforcement actions has dramatically increased during the current economic downturn. Second, an increasing number of banks are subject to individual capital requirements - requirements that are higher than the requirements specified in statutes and regulations. Third, the data suggest that enforcement rates are not consistent among bank regulators. In particular, the Federal Reserve is less likely than other regulators to bring serious capital enforcement actions and is less likely to increase capital requirements. Fourth, the data show a near complete absence of capital enforcement actions issued to the largest banks. Because the study clearly reveals an increase in discretionary capital enforcement actions, the Article examines the proper role of this discretionary enforcement. It concludes that a capital regulation system that relies heavily on discretion is troublesome. Discretionary capital enforcement is often ineffective and costly. Moreover, the focus on individual bank conditions can blind regulators to macroeconomic problems. Instead, policymakers should work to create capital rules that are sufficient without significant discretionary capital enforcement.
Author: Julie Andersen Hill Publisher: ISBN: Category : Languages : en Pages : 64
Book Description
Improving commercial bank capital requirements has been a top priority on the regulatory agenda since the beginning of the 2008 financial crisis. Unfortunately, some of the information necessary to make informed decisions about capital regulation has been missing. Existing regulations establish numerical capital requirements. Regulators, however, have significant discretion to set higher capital requirements for individual banks. In considering necessary reforms, regulators often focus on specific numerical requirements, but sometimes ignore the structure of the regulations and discretionary enforcement efforts. Without clear information about discretionary capital enforcement actions, it is impossible to make informed judgments about the current capital regulation system. This Article provides a more complete picture of discretionary capital enforcement. It reports an empirical study of all publicly available formal capital enforcement actions between 1993 and 2010. The data, compiled from more than 2300 enforcement actions, reveal four significant insights. First, the number of capital enforcement actions has dramatically increased during the current economic downturn. Second, an increasing number of banks are subject to individual capital requirements - requirements that are higher than the requirements specified in statutes and regulations. Third, the data suggest that enforcement rates are not consistent among bank regulators. In particular, the Federal Reserve is less likely than other regulators to bring serious capital enforcement actions and is less likely to increase capital requirements. Fourth, the data show a near complete absence of capital enforcement actions issued to the largest banks. Because the study clearly reveals an increase in discretionary capital enforcement actions, the Article examines the proper role of this discretionary enforcement. It concludes that a capital regulation system that relies heavily on discretion is troublesome. Discretionary capital enforcement is often ineffective and costly. Moreover, the focus on individual bank conditions can blind regulators to macroeconomic problems. Instead, policymakers should work to create capital rules that are sufficient without significant discretionary capital enforcement.
Author: Hal S. Scott Publisher: Oxford University Press ISBN: 0199883521 Category : Business & Economics Languages : en Pages : 355
Book Description
This book is timely since the Basel Committee on Banking Supervision at the Bank for International Settlements is in the process of making major changes in the capital rules for banks. It is important that capital adequacy regulation helps to achieve financial stability in the most efficient way. Capital adequacy rules have become a key tool to protect financial institutions. The research contained within the book covers some key issues at stake in the capital requirements for insurance and securities firms. The contributors are among the leading scholars in financial economics and law. Their contributions analyze the use of subordinated debt, internal models, and rating agencies in addition to examining the effect on capital of reinsurance, securitization, credit derivatives, and similar instruments.
Author: Sophia Velez Publisher: Routledge ISBN: 1000180123 Category : Business & Economics Languages : en Pages : 139
Book Description
Due to a historical lack of attention to the importance of modelling, measuring and managing risk, senior bank leaders are struggling to implement unified practices within their financial institutions that could address the gaps posed by risky management behaviour, rogue trading, liquidity crises, prohibited investments in mortgage-backed securities, and default risks aligned with loans. This book discusses the theories at play between bank agents (bank managers) and their principals (shareholders), a topic which has gained importance as a result of the banking crisis, and similarly, governed the need for more efficient risk management and ethical managerial practices. The author worked with a senior bank leadership team to identify and describe effective capital regulation practices that can lead to a reduction in loss and risky management behavioural practices. The book offers consensus on a number of activities that bank managers can implement to address bank risk. It analyses the relevant factors that determine the necessity for banking regulation and the important role of regulation in managing banking crises. The author’s analysis of the important regulatory aspects in developed countries such as the US, offers a useful conceptual framework for creating an adequate banking regulatory environment in developing countries. This book offers an original contribution to the field of banking that undergraduate, masters, PhD students, academics and researchers can use to gain a deeper understanding of the constructs at play in the banking industry.
Author: Daniel Tarullo Publisher: Columbia University Press ISBN: 0881324914 Category : Business & Economics Languages : en Pages : 327
Book Description
The turmoil in financial markets that resulted from the 2007 subprime mortgage crisis in the United States indicates the need to dramatically transform regulation and supervision of financial institutions. Would these institutions have been sounder if the 2004 Revised Framework on International Convergence of Capital Measurement and Capital Standards (Basel II accord)—negotiated between 1999 and 2004—had already been fully implemented? Basel II represents a dramatic change in capital regulation of large banks in the countries represented on the Basel Committee on Banking Supervision: Its internal ratings–based approaches to capital regulation will allow large banks to use their own credit risk models to set minimum capital requirements. The Basel Committee itself implicitly acknowledged in spring 2008 that the revised framework would not have been adequate to contain the risks exposed by the subprime crisis and needed strengthening. This crisis has highlighted two more basic questions about Basel II: One, is the method of capital regulation incorporated in the revised framework fundamentally misguided? Two, even if the basic Basel II approach has promise as a paradigm for domestic regulation, is the effort at extensive international harmonization of capital rules and supervisory practice useful and appropriate? This book provides the answers. It evaluates Basel II as a bank regulatory paradigm and as an international arrangement, considers some possible alternatives, and recommends significant changes in the arrangement.
Author: Thomas J. McCool Publisher: DIANE Publishing ISBN: 0788140612 Category : Languages : en Pages : 74
Book Description
This report summarizes the results of a review of the implementation of the Fed. Deposit Insur. Corp. Improve. Act of 1991's (FDICIA) Prompt Regulatory Action provisions. Focuses on the Fed. Reserve System's and the Office of the Comptroller of the Currency's efforts to implement the provisions and the impact of the provisions on Fed. oversight of depository institutions. Also discusses other initiatives, contained in FDICIA or self-initiated by the regulators, that are intended to improve the supervision and early identification of institutions with safety problems.
Author: Miles A. Cobb Publisher: ISBN: Category : Banking law Languages : en Pages : 788
Book Description
This book details the criteria used by federal examiners to evaluate the safety and soundness of depository institutions. Numerous examples of written charges, enforcement proceedings, cease-and-desist orders, and other reference material is provided.
Author: Alexander Dill Publisher: Taylor & Francis ISBN: 1000702731 Category : Law Languages : en Pages : 327
Book Description
Bank Regulation, Risk Management, and Compliance is a concise yet comprehensive treatment of the primary areas of US banking regulation – micro-prudential, macroprudential, financial consumer protection, and AML/CFT regulation – and their associated risk management and compliance systems. The book’s focus is the US, but its prolific use of standards published by the Basel Committee on Banking Supervision and frequent comparisons with UK and EU versions of US regulation offer a broad perspective on global bank regulation and expectations for internal governance. The book establishes a conceptual framework that helps readers to understand bank regulators’ expectations for the risk management and compliance functions. Informed by the author’s experience at a major credit rating agency in helping to design and implement a ratings compliance system, it explains how the banking business model, through credit extension and credit intermediation, creates the principal risks that regulation is designed to mitigate: credit, interest rate, market, and operational risk, and, more broadly, systemic risk. The book covers, in a single volume, the four areas of bank regulation and supervision and the associated regulatory expectations and firms’ governance systems. Readers desiring to study the subject in a unified manner have needed to separately consult specialized treatments of their areas of interest, resulting in a fragmented grasp of the subject matter. Banking regulation has a cohesive unity due in large part to national authorities’ agreement to follow global standards and to the homogenizing effects of the integrated global financial markets. The book is designed for legal, risk, and compliance banking professionals; students in law, business, and other finance-related graduate programs; and finance professionals generally who want a reference book on bank regulation, risk management, and compliance. It can serve both as a primer for entry-level finance professionals and as a reference guide for seasoned risk and compliance officials, senior management, and regulators and other policymakers. Although the book’s focus is bank regulation, its coverage of corporate governance, risk management, compliance, and management of conflicts of interest in financial institutions has broad application in other financial services sectors. Chapter 6 of this book is freely available as a downloadable Open Access PDF at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC-BY-NC-ND) 4.0 license.
Author: Julie Andersen Hill
Author: Julie Andersen Hill
Author: 
Author: Hal S. Scott
Author: Sophia Velez
Author: Daniel Tarullo
Author: Thomas J. McCool
Author: United States. General Accounting Office
Author: United States. General Accounting Office
Author: Miles A. Cobb
Author: Alexander Dill