Download or read book Do Regulators Search for the Quiet Life The Relationship Between Regulators and the Regulated in Banking written by Richard J. Rosen and published by . This book was released on 2005 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: In some industries, firms are able to choose who regulates them. There is a long debate over whether regulatory competition is beneficial or whether it leads to a ?race for the bottom.? We introduce another possible issue with regulation. Regulators may take actions intended to minimize the effort they spend on work. Using banking as an example, we test this ?quiet life? hypothesis against other explanations of regulatory behavior. Banks are able to switch among three options for a primary federal regulator: the OCC, the Federal Reserve, and the FDIC. We examine why they switch and what the results of switches are. We find support for the hypothesis that competition among regulators has beneficial aspects. Regulators seem to specialize, offering banks that are changing strategy the ability to improve performance by switching regulators. There is also evidence that the ability to switch regulators allows banks to get away from an examiner that desires a quiet life. I would like to thank Susan Monaco, Terry Nixon, Greg Udell, and participants in workshops at Indiana University and the Federal Reserve Bank of Chicago for comments on the paper. Some of this work was completed while the author was visiting the Federal Reserve Bank of Chicago. The opinions expressed in this paper are those of the author, and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.

Download or read book Monetary Policies Banking Systems Regulatory Convergence Efficiency and Growth in the Mediterranean written by R. Ayadi and published by Springer. This book was released on 2013-11-28 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary Policy, central banking, and international norms and regulations; a discussion far from new, nor applying exclusively to the world's most advanced economies. A sound monetary policy and a well-enforced regulatory regime is provided, in explanation of developing nations to channel financial resources more efficiently into investments.

Download or read book The Difficult Construction of European Banking Union written by David Howarth and published by Taylor & Francis. This book was released on 2020-06-29 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Difficult Construction of European Banking Union examines the political, legal and economic issues surrounding the lacunae and design faults of European Banking Union and its problematic operation. The volume brings together the work of sixteen scholars focused on the diverse debates surrounding the construction and operation of Banking Union (BU), and its necessary reform. BU represents one of the most important developments in European integration since the launch of Monetary Union. Furthermore, the design of the BU agreed between 2012 and 2014 was a messy compromise among EU member states. It is not surprising then that BU has sparked a lively academic debate and triggered an ever-growing number of publications from different disciplinary backgrounds. The first wave of academic work on BU focuses upon the economic rationale underpinning the supranationalisation of control over banking — regulation, supervision, support and resolution — and the political dynamics and legal issues that shaped the design of the Union agreed. This volume is located at the intersection of this first phase of academic research and a second stage which analyses the functioning of the different elements of BU. New research questions are triggered by the albeit limited empirical evidence on BU’s implementation and operation. Contributions to this second wave of research attempt to identify potentially dangerous lacunae and contribute to on-going reform debates. The Difficult Construction of European Banking Union will be of great interest to scholars of the European Union, Banking, Economic Governance, and Political Economy. Most of the chapters were originally published as three special issues in the Journal of Economic Policy Reform.

Download or read book Switching Primary Federal Regulators Is it Beneficial for U S Banks written by Richard J. Rosen and published by DIANE Publishing. This book was released on 2008-08 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the impact of switching primary federal regulators on banks¿ return and risk, using data from 1977 to 2001. Return increases and risk changes minimally for banks that switch regulators from 1992 to 2003, while there is no significant change in either return or risk for banks switching earlier. The improved performance at banks switching between 1992 and 2003 is evidence for beneficial competition among regulators, and the absence of an increase in risk throughout the sample period is inconsistent with a ¿race for the bottom¿ among regulators. Tables and graphs.

Download or read book Should Financial Sector Regulators Be Independent written by Mr.Marc Quintyn and published by International Monetary Fund. This book was released on 2004-03-08 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: In nearly every major financial crisis of the past decade-from East Asia to Russia, Turkey, and Latin America-political interference in financial sector regulation helped make a bad situation worse. Political pressures not only weakened financial regulation, but also hindered regulators and supervisors from taking action against troubled banks. This paper investigates why, to fulfill their mandate to preserve financial sector stability, financial sector regulators and supervisors need to be independent-from the financial services industry as well as from the government-as well as accountable.

Download or read book Governing Banking s Future Markets vs Regulation written by Catherine England and published by Springer Science & Business Media. This book was released on 2013-11-22 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk-based capital standards presume a need for common capital standards across countries. The details of forging an agreement were left to the staffs of the primary bank regulators in each country, and compromises were inevitable. Although domestic constituencies' reactions to the proposals were invited, the arduous negotiations that led to the proposals generated intense pressure on the principals not to make changes. The European Community's approach to financial integration seems to be driven by a political desire to achieve an integrated market within Europe, despite significant institutional differences among countries. Underlying that desire is a belief that the market pressures that result from different regulatory systems operating in the same market will produce the right answer. The financial provisions of the U.S.-Canada free-trade agreement take a direction that, in my judgment, is more productive. The provisions are more limited in scope than are those of the European initiative. National treatment and national sovereignty are preserved. However, the delicate issue of national responsibility for failing institutions, and its relationship to monetary policies, is not addressed. A Better Alternative A productive basis for international regulation can be formulated around three principles: 1. free entry for foreign-owned subsidiaries chartered under the laws of the host country; 2. national treatment for those subsidiaries; and 3. national responsibility for (a) monetary policy, (b) prevention of unwarranted financial panics in domestically chartered institutions, whether foreign or domestically owned, and (c) supervision of all domestically chartered institutions, regardless of ownership.

Download or read book Exploring the Future of Russia s Economy and Markets written by Bruno S. Sergi and published by Emerald Group Publishing. This book was released on 2018-11-06 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on the 2017 conference "'New Reality' and Russian Markets" held at Harvard University, this book brings together world-renowned thinkers to offer the latest empirical research on recent financial risks, institutional policies, and financial stability.

Download or read book Who Regulates Whom and How written by Edward V. Murphy and published by CreateSpace. This book was released on 2013-07 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial regulatory policies are of interest to Congress because firms, consumers, and governments fund many of their activities through banks and securities markets. Furthermore, financial instability can damage the broader economy. Financial regulation is intended to protect borrowers and investors that participate in financial markets and mitigate financial instability. This report provides an overview of the regulatory policies of the agencies that oversee banking and securities markets and explains which agencies are responsible for which institutions, activities, and markets. Banking U.S. banking regulation traditionally focuses on prudence. Banks' business decisions are regulated for safety and soundness and adequate capital. In addition, banks are given access to a lender of last resort, and some bank creditors are provided guarantees (deposit insurance). Regulating the risks that banks take is believed to help smooth the credit cycle. The credit cycle refers to periodic booms and busts in lending. Prudential safety and soundness regulation and capital requirements date back to the 1860s when bank credit formed the money supply. The Federal Reserve as lender of last resort was created following the Panic of 1907. Deposit insurance was established in the 1930s to reduce the incentive of depositors to withdraw funds from banks during a financial panic. Securities, Derivatives, and Similar Contract Markets Federal securities regulation has traditionally focused on disclosure and conflicts of interest, rather than on prudence. Securities regulation is typically designed to ensure that market participants have access to enough information to make informed decisions, rather than to limit the riskiness of the business models of publicly traded firms. Firms that sell securities to the public must register with the Securities and Exchange Commission (SEC). SEC registration in no way implies that an investment is safe, only that material risks have been disclosed. The SEC also registers several classes of securities market participants and firms. It has enforcement powers for certain types of industry misstatements or omissions and for certain types of conflicts of interest. Derivatives trading is supervised by the Commodity Futures Trading Commission (CFTC), which oversees trading on the futures exchanges, which have self-regulatory responsibilities as well. The Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) required more disclosures in the over-the-counter derivatives market than prior to the financial crisis and has granted the CFTC and SEC authority over large derivatives traders. Government Sponsored Enterprises The Federal Housing Finance Agency (FHFA) oversees a group of government-sponsored enterprises (GSEs). Two of the GSEs, Fannie Mae and Freddie Mac, securitize residential mortgages, and they were placed in conservatorship following mortgage losses in 2008. In the conservatorship, the Treasury provides financial support to the GSEs and FHFA and Treasury have managerial control over the enterprises. FHFA also regulates the Federal Home Loan Bank (FHLB) system. Changes Following the 2008 Financial Crisis The Dodd-Frank Act created the interagency Financial Stability Oversight Council (FSOC) and authorized a permanent staff to monitor systemic risk and consolidated bank regulation from five agencies to four. The DFA granted the Federal Reserve oversight authority and the Federal Deposit Insurance Corporation (FDIC) resolution authority over the largest financial firms. The DFA consolidated consumer protection rulemaking, which had been dispersed among several federal agencies, in the new Consumer Financial Protection Bureau. Special Topics The appendices in this report include additional information on topics, such as the regulatory structure prior to the Dodd-Frank Act, organizational differences among financial firms, and the rating system that regulators use to evaluate the health of banks.

Download or read book Bank Lobbying Regulatory Capture and Beyond written by Ms.Deniz O Igan and published by International Monetary Fund. This book was released on 2019-08-09 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we discuss whether and how bank lobbying can lead to regulatory capture and have real consequences through an overview of the motivations behind bank lobbying and of recent empirical evidence on the subject. Overall, the findings are consistent with regulatory capture, which lessens the support for tighter rules and enforcement. This in turn allows riskier practices and worse economic outcomes. The evidence provides insights into how the rising political power of banks in the early 2000s propelled the financial system and the economy into crisis. While these findings should not be interpreted as a call for an outright ban of lobbying, they point in the direction of a need for rethinking the framework governing interactions between regulators and banks. Enhanced transparency of regulatory decisions as well as strenghtened checks and balances within the decision-making process would go in this direction.

Download or read book Reforming the Bank Regulatory Structure written by Andrew S. Carron and published by . This book was released on 1984 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Economic Quarterly written by and published by . This book was released on 2002 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Regulatory Cycle in Banking written by Maurizio Trapanese and published by . This book was released on 2021-01-11 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyses the interactions between financial regulation and crises with reference to the experience of the United States in the period after the global financial crisis up to the COVID-19 emergency. The US case has been framed in a more general context, making extensive reference to the theoretical literature that has examined in depth the interactions between financial laws and crises throughout the centuries (and across countries). In the last few years, a new regulatory system for large banks has arisen in the US, reversing some elements of the Dodd-Frank Act and introducing deviations from the prudential rules agreed by the G20 after the financial crisis of 2007-09. This approach is confirmed by some of the measures adopted in response to COVID-19. These signs of a softened approach to banking regulation (and supervision) are also spreading beyond the United States and they can be inferred from a variety of circumstances and institutional contexts This is a sign that the pendulum on financial regulation is swinging back again. The cumulative effect of these trends could force the globally harmonized approach to regulation to be broken down, also in the light of the situation triggered by the COVID-19 pandemic. A trend towards easing or suspending prudential rules now could expose the international banking system to growing risks in the years to come. In the current exceptional circumstances as well, the international standards must not be breached, as they provide the resilience needed to sustain lending to the economy, and to keep banks safe. It is important to stress that the banking systems that seem to be in a better position to withstand the present shock - having higher average levels and quality of prudential requirements - are those more advanced in the consistent implementation of the G20 international standards. With the memory of the global financial crisis fading and the long post-crisis economic expansion coming to an end, the pressures to dilute the G20 rules could grow stronger. The importance of maintaining a consistent approach to needs to be emphasized. About the author: Maurizio Trapanese is Director in the DG Economics, Statistics and Research of the Bank of Italy. His responsibilities include research on the international prudential regulation, the cyclicality of financial laws, and the EU framework for crisis management. Previously, he worked in the DG Supervision, where he was involved in the international negotiations on prudential rules. He has participated to international committees at the Eurosystem, EU, and global level, directly contributing to the finalization of the post-financial crisis standards and the EU single rulebook in banking.

Download or read book A Note on the Estimation of Linear Regression Models with Heteroskedastic Measurement Errors written by Daniel Gerard Sullivan and published by . This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Modernizing Bank Supervision and Regulation written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs and published by . This book was released on 2009 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Research Handbook on International Financial Regulation written by Kern Alexander and published by Edward Elgar Publishing. This book was released on 2012 with total page 469 pages. Available in PDF, EPUB and Kindle. Book excerpt: The globalisation of financial markets has attracted much academic and policymaking commentary in recent years, especially with the growing number of banking and financial crises and the current credit crisis that has threatened the stability of the global financial system. This major new Research Handbook sets out to address some of the fundamental issues in financial regulation from a comparative and international perspective and to identify some of the main research themes and approaches that combine economic, legal and institutional analysis of financial markets. Specially commissioned contributions represent diverse viewpoints on the financial regulation debate and cover a number of new and controversial topics not yet adequately addressed in the literature. Specifically, these include; financial innovation particularly in the context of the credit risk transfer market, securitization and the systemic importance of the over-the-counter trading markets; the institutional structure of international financial regulation; and risk management and corporate governance of financial institutions. This Handbook will provide a unique and fully up-to-date resource for all those with an interest in this critical issue including academic researchers in finance and regulation, practitioners working in the industry and those involved with regulation and policy.

Download or read book The Mis measurement of Permanent Earnings written by Bhashkar Mazumder and published by . This book was released on 2001 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transportation Labor Issues and Regulatory Reform written by James H Peoples and published by Elsevier. This book was released on 2004-08-24 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: Regulatory reform in the late 1970s and early 1980s vastly transformed the labor market for transportation workers. Most research in this area focuses on the effect of deregulation on the earnings of nonmanagement company workers in airline, trucking and rail. Deregulation of transportation industries, though, has had a broader effect on workers. For instance, deregulation also influences workers’ hours worked per week, working conditions, worker safety, and a host of other labor issues. Deregulation might also influence the earnings of managers and self-employed workers in transportation industries. Examining these issues is valuable because such analysis provides a more complete assessment of labor market changes following the shift to a more market oriented business environment. Transportation Labor Issues and Regulatory Reform adds to the debate on deregulation’s influence on transportation labor markets by presenting empirical evidence on an array of labor market outcomes in transportation industries. Contributions to this volume are categorized by their analysis on worker safety, working conditions and employment opportunities, and by their analysis on managerial and self-employed earnings