Financial Stability and Central Banks: A Global Perspective

by Brearley; Richard

• ISBN13: 9780415257763
• ISBN10: 041525776X
• Edition: 1st
• Format: Nonspecific Binding
• Copyright: 2001-05-29
• Publisher: Routledge

Summary

This book offers an overview of present day thought on the very topical subject of financial stability and central banking. The papers, written by leading researchers, provide a highly informed account of contemporary policy issues and explore the legal, regulatory, managerial and economic issues that affect central banks.

Table of Contents

List of Charts	x
List of Tables	xi
Contributors	xii
Foreword	xiii
Sir Edward George
Acknowledgments	xvi
Financial stability and central banks: an introduction	1	(18)
Peter Sinclair
Background	1	(1)
Summary of the volume	2	(5)
Twelve questions about financial stability	7	(1)
Financial crises and the morbidity of banks	8	(1)
Competition and Safety	9	(4)
The links between financial stability policy and monetary policy	13	(2)
Bakers and firefighters	15	(2)
Conclusions	17	(2)
Financial stability and the central bank: international evidence	19	(60)
Juliette Healey
Introduction	19	(1)
The evolution of responsibilities	20	(4)
The current spectrum of central bank financial stability activities	24	(43)
Monetary policy independence and central bank responsibility for prudential regulation and supervision - conflict or synergy?	67	(7)
Key issues in establishing an effective regulatory institutional structure	74	(1)
Conclusions	75	(4)
The organisational structure of banking supervision	79	(28)
Professor Charles Goodhart
Introduction	79	(4)
Arguments for separation	83	(8)
Arguments for unification	91	(5)
Are the issues the same in emerging countries?	96	(5)
Conclusions	101	(6)
Alternative approaches to regulation and corporate governance in financial firms	107	(37)
David T. Llewellyn
Introduction and issues	107	(4)
The experience of banking crises	111	(1)
The regulatory regime	112	(2)
Components of a regulatory regime	114	(22)
Differentiations in the regime	136	(2)
Shifts within the regulatory regime	138	(4)
Assessment	142	(2)
Bank capital requirements and the control of bank failure	144	(22)
Richard A. Brealey
Introduction	144	(2)
Causes and Consequences of banking crises	146	(3)
Capital requirements	149	(1)
Bank risk and capital requirements	150	(5)
The cost of bank capital requirements	155	(3)
Asset valuation	158	(2)
Conclusions	160	(6)
Crisis management, lender of last resort and the changing nature of the banking industry	166	(21)
Glenn Hoggarth
Farouk Soussa
Introduction	166	(1)
Justification for central bank involvement in financial crises	166	(1)
Crisis prevention - the financial safety net	167	(1)
Lender of penultimate resort - private sector solutions	168	(2)
Lender of last resort (LOLR)	170	(4)
Terms and conditions for LOLR	174	(3)
Crisis management, consolidation and the changing nature of the banking industry	177	(3)
Conclusion	180	(7)
Case study - UK small bank crisis 1991-2	182	(2)
Case study - Barings, February 1995	184	(3)
International capital movements and the international dimension to financial crises	187	(34)
Peter Sinclair
Chang Shu
Introduction	187	(1)
Capital movements across the exchanges: curse or blessing?	187	(11)
Financial crises and capital movements	198	(10)
Capital controls in practice	208	(11)
Concluding remarks	219	(2)
Some concluding comments	221	(4)
Alastair Clark
Appendix 1 Minutes of the Bank of England's 7th Central Bank Governors' Symposium (2 June 2000)	225	(7)
Appendix 2 Central Bank Governors' Symposium participants	232	(5)
References	237	(15)
Index	252