Rethinking Bank Regulation: Till Angels Govern

by James R. Barth , Gerard Caprio , Ross Levine

• ISBN13: 9780521709309
• ISBN10: 052170930X
• Edition: 1st
• Format: Paperback
• Copyright: 2008-05-12
• Publisher: Cambridge University Press

Summary

This volume assembles and presents a new database on bank regulation in over 150 countries. It offers the first comprehensive cross-country assessment of the impact of bank regulation on the operation of banks, and assesses the validity of the Basel Committee's influential approach to bank regulation. The treatment also provides an empirical evaluation of the historic debate about the proper role of government in the economy by studying bank regulation and analyzes the role of politics in determining regulatory approaches to banking. The data also indicate that restrictions on the entry of new banks, government ownership of banks, and restrictions on bank activities hurt banking system performance. The authors find that domestic political factors shape both regulations and their effectiveness.

Table of Contents

Introduction

Motivation

Objectives and contributions

Key findings: a brief synopsis

guide to the book

Contrasting approaches to bank regulation

Two approaches to bank regulation

Public interest approach

Private interest view of regulation

Bank regulation: how

The Basel Committee and regulatory convergence

Conclusion

How are banks regulated and supervised around the world?

Overview

Structure, scope and independence of regulation and supervision

What is a 'bank'?

Entry into banking, capital requirements and supervisory powers

Explicit deposit insurance schemes

Private monitoring and external governance

Does bank ownership type affect the choice of regulations and supervisory practices?

Forces for greater harmonization of regulation and supervision among countries

What works best

Goals and boundaries

Bank regulation and supervision and bank development

Bank supervision, regulation, and stability

Bank supervision, regulation, and bank efficiency

Bank supervision, regulation, and bank lending

Supervision, regulation, and bank governance

Summary of results

Choosing bank regulations

Recap and motivation

Motivating example: Mexico and the United States

Conceptual framework

Empirical framework and data

Summary remarks

Rethinking bank regulation

Approach and context

Lessons and implications

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