Reforming bank capital regulation: Using subordinated debt to enhance market and supervisory discipline

Contemporary Economic Policy

Volumn 19, Issue 4, 2001, Pages 444-453

  Evanoff, Douglas D ^a   Wall, Larry D ^b  

^a FEDERAL RESERVE BANK OF CHICAGO   (United States)

^b FEDERAL RESERVE BANK OF ATLANTA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 23044529415     PISSN: 10743529     EISSN: None     Source Type: Journal    
DOI: 10.1093/cep/19.4.444     Document Type: Article

References (32)

1. Bank for International Settlement. "A New Capital Adequacy Framework." Consultative Paper Issued by the Basel Committee on Banking Supervision, 1999.
2. Barth, J. R., and P. F. Bartholomew. "The Thrift Industry Crisis: Revealed Weaknesses in the Federal Deposit Insurance System," in The Reform of Federal Deposit Insurance, edited by J. R. Barth and R. D. Brumbaugh, Jr. Stanford: Stanford University Press, 1991.
3. Basel Committee on Banking Supervision. International Convergence of Capital Measurement and Capital Standards. Basel, Switzerland: Bank for International Settlements, 1988.
4. Benink, H. A., and R. H. Schmidt. "Agenda for Banking in Europe," in Bank Fragility and Regulation: Evidence From Different Countries and Different Times, edited by G. G. Kaufman. Greenwich: JAI Press.
5. Benston, G. J. "The Purpose of Capital for Institutions with Government-Insured Deposits." Journal of Financial Services Research, 5(4), 1992, 369-84.
6. Benston, G. J., and G. G. Kaufman. "Regulating Bank Safety and Performance," in Restructuring Banking and Financial services in America, edited by W. S. Haraf and R. M. Kushmeider. Washington, DC: American Enterprise Institute for Public Policy Research, 1988a.
7. _. Risk and Solvency Regulation of Depository Institutions: Past Policies and Current Options, Salomon Brothers Monograph Series in Finance and Economics # 1988-1. New York: Graduate School of Business Administration, New York University, 1988b.
8. Calomiris, C. W. The Postmodern Bank Safety Net: Lessons from Developed and Developing Countries. Washington, DC: American Enterprise Institute for Public Policy Research, 1997.
9. Calomiris, C. W. Blueprints for a New Global Financial Architecture. Washington, DC: American Enterprise Institute, 1998.
10. Covitz, D. M., D. Hancock, and M. L. Kwast. "Market Discipline, Banking Organizations and Subordinated Debt." Paper presented at the 2000 Global Finance Association Meetings, Chicago, April 21, 2000.
11. Evanoff, D. D. "Preferred Sources of Market Discipline." Yale Journal on Regulation, 10(2), 1993, 347-68.
12. Evanoff, D. D., and L. D. Wall. "Subordinated Debt and Bank Capital Reform." Federal Reserve Bank of Chicago Working Paper Series, #2000-7, 2000a.
13. _. "The Role of Subordinated Debt in Bank Safety and Soundness Regulations." in Proceedings of a Conference on Bank Structure and Competition. Chicago: Federal Reserve Bank of Chicago, 2000b.
14. _. "Measures of the Riskiness of Banking Organizations: Subordinated Debt Yields, Risk-Based Capital, Examination Ratings." Paper presented at the Conference on Banks and Systemic Risk, Bank of England, London, May 24, 2001a.
15. _. "Sub-debt Yield Spreads as Bank Risk Measures." Journal of Financial Services Research, forthcoming, 2001b.
16. Federal Deposit Insurance Corporation. Improvement Act. U.S.C. § vol. 12, sec. 102, 1999.
17. Ferguson, R. W., Jr. "Evolution of Financial Institutions and Markets: Private and Policy Implications." Speech presented at New York University, New York, February 25, 1999.
18. Flannery, M. J., and S. M. Sorescu. "Evidence of Bank Market Discipline in Subordinated Debenture Yields: 1983-1991. Journal of Finance, 51(4), 1996, 1347-78.
19. Gramm-Leach-Bliley Act. U.S.C. § sec. 6801-6810, 1999.
20. Horvitz, P. M. "Market Discipline is Best Provided by Subordinated Creditors." American Banker, July 15, 1983, 3.
21. _. "Subordinated Debt is Key to New Bank Capital Requirements." American Banker, December 31, 1984, 5.
22. Kaufman, G. G. "Capital in Banking: Past, Present and Future." Journal of Financial Services Research, 5(4), 1992, 385-402.
23. Keehn, S. Banking on the Balance: Powers and the Safety Net. Chicago: Federal Reserve Bank of Chicago, 1989.
24. Kwast, M. L., D. M. Covitz, D. Hancock, J. V. Houpt, D. P. Adkins, N. Barger, B. Bouchard, J. F. Connolly, T. F. Brady, W. B. English, D. D. Evanoff, and L. D. Wall. "Using Subordinated Debt as an Instrument of Market Discipline." Report of a study group on subordinated notes and debentures, Board of Governors of the Federal Reserve System. Staff Study, No. 172, December 1999.
25. Lang, W. W., and D. Robertson. "Analysis of Proposals for a Minimum Subordinated Debt Requirement." Office of the Comptroller of the Currency, Economic and Policy Analysis Working Paper #2000-4, 2000.
26. Litan, R. E. "International Bank Capital Standards: Next Steps," in Global Financial Crises: Lessons From Recent Events, edited by J. R. Bisignano, W. C. Hunter, and G. G. Kaufman. Boston: Kluwer Academic, 2000.
27. Meyer, L. H. "Market Discipline As a Complement to Bank Supervision and Regulation." Speech before the Conference on Reforming Bank Capital Standards, Council on Foreign Relations, New York, June 14, 1999.
28. Mingo, J. J. "Policy Implications of the Federal Reserve Study of Credit Risk Models at Major U.S. Banking Organizations." Journal of Banking and Finance, 24(1/2), 1999, 15-34.
29. Morgan, D. P., and K. J. Stiroh. "Bond Market Discipline of Banks: Is the market tough enough?" in Proceedings of a Conference on Bank Structure and Competition. Chicago: Federal Reserve Bank of Chicago, 2000.
30. O'Driscoll, G. P. "IMF Policies in Asia: A Critical Assessment." Heritage Foundation Backgrounder, No. 1265, March 30, 1999.
31. U.S. Shadow Regulatory Committee. Reforming Bank Capital Regulation. Washington DC: AEI Press, 2000.
32. Wall, L. D. "A Plan for Reducing Future Deposit Insurance Losses: Puttable Subordinated Debt." Economic Review (Federal Reserve Bank of Atlanta), 74(4), 1989, 2-17.