The structure of financial regulation

Journal of Financial Regulation and Compliance

Volumn 6, Issue 4, 1998, Pages 326-350

  Dale, Richard ^a,b   Wolfe, Simon ^a  

^a UNIVERSITY OF SOUTHAMPTON   (United Kingdom)

^b QUEEN MARY UNIVERSITY OF LONDON   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 85024879850     PISSN: 13581988     EISSN: 17400279     Source Type: Journal    
DOI: 10.1108/eb024984     Document Type: Article

References (36)

1. For a summary description of the relevant regulatory structures sec appendices 1-5.
2. LaWare, J. (1991) Testimony before the subcommittee on Economic Stabilisation of the Committee on Banking, Finance and Urban Affairs, United States House of Representatives, 9th May, p. 34.
3. Diamond, D. and Dybvig, P. (1983) ‘Bank Runs, Deposit Insurance and Liquidity’, Journal of Political Economy, 91(3), pp. 401-419.
4. Diamond, D. and Dybvig, P. (1986) ‘Banking Theory, Deposit Insurance and Bank Regulation’, Journal of Business, 59(1), pp. 55-68.
5. Dale, R. (1997) ‘Controlling Risks in Large Value Interbank Payments Systems’, Journal of International Banking Law, 12 (II), pp. 426-434.
6. OECD (1997a) ‘Regulatory Reform in the Financial Services Industry: where have we been? Where are we going?', Financial Markets Trends, No. 67, June, pp. 31-96.
7. OECD (1997b) ‘Recent Regulatory and Structural Developments in the Financial Services Industries of OECD Member Countries’, Financial Markets Trends, No. 68, November, pp. 127-172.
8. Litan, R. (1987) ‘What Should Banks Do?', Brookings Institution, Washington DC, pp. 60-98.
9. Based on White, W. (1998) ‘The Coming Transformation of Continental European Banking?', Bank of International Settlements Working Papers, No. 54, Basle, June.
10. Shearlock, P. (1998) ‘The New Retail Model’, The Banker, April, p. 17.
11. Large, A. (1994) Speech to International Organization of Securities Commissions Conference, Tokyo, cited in the Financial Times Financial Regulation Report, October, p. 1.
12. For JP Morgan and Bankers Trust the proportion of secured funding is as high as 25-36 per cent compared to 55-80 per cent for major US securities firms, (cited in George, E. (1997) ‘Are banks still special?', Speech at the IMF 7th Central Banking Seminar: ‘Banking Soundness and Monetary Policy’, Washington DC, 29th January, p. 8.)
13. See George (1997), p. 10.
14. According to the Loan Market Association, the Euromarket’s equivalent of the more long standing Loan Syndication Traders Association in the US, a secondary loan market is developing in Europe. See Edward Luce (1997) ‘Europe warms to secondary loan market’, Financial Times, 4th August.
15. George (1997) ‘Europe warms to secondary loan market’, Financial Times, p. 10.
16. Remarks by Alan Greenspan Chairman, Board of Governors of the Federal Reserve System at the Annual Convention of the Independent Bankers Association of America, 22nd March, 1997, p. 8.
17. ‘Supervision of Financial Conglomerates’ Joint Forum on Financial Conglomerates (Consultation documents released by the Basle Committee on Banking Supervision). February 1998, p. 11, para. 32.
18. For instance, IOSCO has recently given prominence to the reduction of systemic risk as a primary objective of securities regulation: Sec IOSCO (1998) ‘Objectives and Principles of Securities Regulation’, Consultation Draft, June 3, p. 8.
19. Insurance should, however, be differentiated for two reasons: first, as explained in the text, systemic risk is less than in banking/securities business and, second, it may not be appropriate to include insurance companies within group consolidated capital adequacy assessment if under relevant insurance legislation capital cannot be transferred to other financial firms within the group.
20. Since 1990 the US mutual fund industry has grown from S600 billion to over S4 trillion today, while US bank deposits over the same period have remained static at S2.2 trillion. Investment actions by mutual funds could conceivably give rise to systemic instability. See The Banker, April 1998, p. 17.
21. Greenspan, A. (1998) Statement before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Banking and Financial Services, United States House of Representatives, 13th February, p. 10.
22. See, generally, Goodhart, C., Hartmann, P., Llewellyn, D., Rojas-Suarez, L. and Weisbrod, S. (1998) ‘Financial Regulation:Why, How and Where Now?, Mac-. millan, London (forthcoming), p. 19. More generally chapter 8 of this study provides a useful discussion of policy issues relating to the institutional structure of regulation.
23. Dale, R. (1992) ‘International Banking Deregulation: The Great Banking Experiment’, Basil Blackwcll, Oxford.
24. George (1996), cited in Goodhart et al. (1998) ‘International Banking Deregulation: The Great Banking Experiment’, Basil Blackwcll, Oxford Chapter 8.
25. Taylor, M. (1995) ‘Twin Peaks: A Regulatory Structure for the New Century’, Centre for the Study of Financial Innovation, London, December.
26. Financial System Inquiry (1997) ‘Financial System Inquiry: Final Report, ‘The Wallis Inquiry’, Commonwealth of Australia, March.
27. Taylor, M. (1997) ‘Regulatory Leviathan:Will Super-SIB Work?', CTA Financial Publishing, London.
28. Goodhart, C. and Schoenmaker, D. ‘Institutional Separation between Supervisory and Monetary Agencies’, London School of Economics Financial Markets Group, April.
29. Taylor, M. (1998) ‘Assessing the Case for an Integrated Financial Commission’, paper presented at the third High Level Group on Financial Sector Reform in Latin America and the Caribbean, Madrid, May.
30. Goodhart et al. (1998) ‘Assessing the Case for an Integrated Financial Commission’, paper presented at the third High Level Group on Financial Sector Reform in Latin America and the Caribbean, Madrid, May.
31. Directory of Financial Regulatory Agencies (1996), Central Bank Publications, London.
32. Herring, R. and Litan, R. (1994) ‘Financial Regulation in the Global Economy’, The Brookings Institution, Washington, DC.
33. Dale, R. (1996) ‘Risk and Regulation in Global Securities Markets’, John Wiley, New York, pp. 135-151.
34. Dale, R. (1996) ‘Risk and Regulation in Global Securities Markets’, John Wiley, New York, pp. 144-146.
35. Group of Thirty (1997), ‘Global Institutions, National Supervision and Systemic Risk’, Washington, DC, p. V.
36. Source: US Treasury (1991) ‘Modernizing the Financial System: Recommendations for Safer, More Competitive Banks’, The Department of the Treasury, February 1991, p. 56.