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This study examines the formalization of banking supervision in Japan and Sweden that occurred in the decades around 1900. Using an incremental change approach, we examine the respective cases along three dimensions: (a) the legal framework, (b) the banking supervisory agency, and (c) bank supervisory activities. Through this comparative analysis, we find several similarities and differences. The most important similarity we find is that financial crises—generally considered to be a primary driver of major regulatory and supervisory reforms—did not play a main role in the formalization of supervision in either Japan or Sweden. Rather, formalization was an incremental change process closely linked to the organic development of the banking sector, the general public's increasing exposure to the banks as deposit holders and borrowers, and the increased need for professionalization of the banking sector. This finding suggests that our approach is applicable to any country where the formalization of supervision took place without being prompted by a specific event such as a financial crisis. [ABSTRACT FROM AUTHOR]

Regulation of the banking and finance industry may lead to a more equal distribution of income if regulators pursue goals in the public interest. Alternatively, the economic theory of regulation predicts that regulatory and supervisory processes may be captured by the banking industry, leading to policies that promote the industry's interests. The liberalization of the banking and finance sector since the 1980s has produced more intense banking supervision and prudential regulation. In this study we find that banking supervision regulation is associated with greater income inequality. These findings are consistent with the economic theory of regulation. We interpret these results as evidence that regulatory capture in the banking and finance industry can have pernicious effects on the distribution of income. [ABSTRACT FROM AUTHOR]

This article illustrates the interrelation between the EU law and international law in the institutional set-up of the close co-operation arrangement in the Single Supervisory Mechanism, the first arm of the European Banking Union. Based on the legal status of the unilateral acts of states in public international law, the article sheds light on the legal character of the unilateral undertaking of the non-euro Member State to abide by European Central Bank acts. The article challenges the official opinions on the lack of a transfer of sovereignty from national to Union level and alleges the illegality of the close co-operation mechanism, given the legal restraints inferred from the case law of the Court of Justice of the European Union. [ABSTRACT FROM AUTHOR]

Recent case law on the scope of professional secrecy for the supervisory authorities of the financial sector and on the measure of openness of their files highlights the lack of co-ordination among the silos of supervision and the absence of clear and uniform professional secrecy rules across the financial sector. The introduction of the Single Supervisory Mechanism (SSM) makes this situation more acute: notwithstanding a centralised system of banking supervision, different approaches may exist in respect of access tofiles, even when based on EU legislation. This contribution addresses the accountability of supervisory authorities and, notably the European Central Bank (ECB), from the perspective of access to supervisory files, as a prelude to possible follow-up proceedings for failing supervision. Recent judgments in the Altmann, Baumeister, Buccioni and UBS Europe cases slowly move the case law on supervisory secrecy towards more openness, long after Hillegom v Hillenius (1984). The judgments make us wonder whether the absence of legislative co-ordination and questionable drafting is being remedied by the judiciary. The variety of legislative provisions and relevant recent case law form the backdrop of our proposal to adopt a Regulation on professional secrecy for supervisory authorities in the financial sector, which would institute a single standard directly applicable across Member States and supervisory authorities. [ABSTRACT FROM AUTHOR]

A ustralia recently introduced legislative reforms and held a royal commission into the misconduct of the financial services sector. The focus had been on a regime to hold the senior executives and the board accountable, increasing the regulatory powers and responsibilities of regulators as well as increasing the penalties. However, the role of compliance professionals has been overlooked. [ABSTRACT FROM AUTHOR]

This paper analyzes the relationship between bank lobbying and supervisory decisions of regulators and documents its moral hazard implications. Exploiting bank-level information on the universe of commercial and savings banks in the United States, I find that regulators are 44.7% less likely to initiate enforcement actions against lobbying banks. This result is robust across measures of lobbying and accounts for endogeneity concerns by employing instrumental variables strategies. In addition, I show that lobbying banks are riskier and reliably underperform their nonlobbying peers. Overall, these results appear rather inconsistent with an information-based explanation of bank lobbying, but consistent with the theory of regulatory capture. This paper was accepted by Amit Seru, finance. [ABSTRACT FROM AUTHOR]

Copyright of Economic Annals-XXI / Ekonomìčnij Časopis-XXI is the property of Institute of Society Transformation and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Studies in Law & Economics / Studia Prawno-Ekonomiczne is the property of Lodz Scientific Society / Lodzkie Towarzystwo Naukowe and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article argues that restructuring and resolution of European banks under the BRRD and the SRMR might be influenced by political intervention. It does so by scrutinising recent bank resolution cases in the EU and by shedding light on the current legal framework, thereby detecting various stages where such political interference, either directly or indirectly, can happen. It closes with policy recommendations. [ABSTRACT FROM AUTHOR]

Abstract In this paper, we examine the links among banking supervision, the volatility of financial flows, and economic growth. In particular, we explore whether banking regulation mitigates the adverse effects of capital flows volatility on economic growth. Using cross-country data over four decades, we find that banking supervision promotes economic growth by dampening the negative impact of volatile capital flows. The findings hold for both aggregate capital flows and its various components, and for both its net and gross counterparts, while they are also robust for various indicators of regulatory policies. The results support the argument that bank regulatory policy rules designed to ensure financial stability are beneficial to long-run economic growth. [ABSTRACT FROM AUTHOR]

The German Federal Financial Supervisory Authority (BaFin) published the 5th amendment to the Minimum Requirements for Risk Management (MaRisk) and also Banking Supervision Requirements regarding IT (BAIT) in late 2017. The BAIT are a clarification of the MaRisk provisions regarding the fie ld of IT and constitute the Bafin s response to significantly increased IT risks such as cyber-attacks. Both pieces of regulation could have been unified but publishing two documents gives the regulator more flexibility to make changes in future, especially as the area of IT risk is very dynamic. The MaRisk and BAIT are the most relevant pieces of regulation for German banks in their da)-to-day business. They further impact other business areas which apply (parts) of the banking regulation on a voluntary best practice basis. This legal analysis gives an overview of the changes made through the 5lh MaRisk amendment and BAIT and highlights their important impacts. [ABSTRACT FROM AUTHOR]

This opinion addresses the legal situation of certain European Central Bank (ECB) legal instruments issued in the context of the banking union and public access to ECB documents in the light of the limited jurisdictional domain of the ECB as regards the non-euro periphery. This opinion points out that certain decisions and regulations of the ECB have been addressed to non-euro Member States despite the fact that the Treaty on the Functioning of the European Union (the Treaty or TFEU) expressly precluded such action and demonstrates that even in the most extensive interpretations this cannot be legally justified. [ABSTRACT FROM AUTHOR]

Copyright of Economic & Political Thought / Myśl Ekonomiczna & Polityczna is the property of Lazarski University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper brings attention to banking supervision through some specific indicators to the banking system. The main purpose of prudential supervision is to maintain stability and confidence in the banking system. The stress test is a way of assessing the financial situation of a banking corporation in the event of severe risk events that may affect the volume of capital, financial performance and its existence. So we analyzed the evolution of the banking system as well as the main indicators of the banking system. The main objective of the systemic resistance test is to investigate exposures that could generate endemic effects in the banking sector. [ABSTRACT FROM AUTHOR]

This paper uses data from 141 countries to identify the variables that best characterize worldwide banking regulation and supervision practices. We apply a nonlinear principal components analysis with optimal variable transformation to deal with the variables' mixed measurement levels and reduce data dimensionality. The robustness of the results is tested for different subsamples. The findings indicate that deposit insurance, liquidity, diversification requirements, complementary banking activities, and market discipline are the most reliable indicators to measure regulation. In contrast, resolution activities, the mandate of the head of the supervisory agency, and the report of prudential regulation infractions assume the same role for banking supervision. Capital requirements and ownership are of minor relevance and are sensitive to a country's development level. China and Germany display the most distinct regulation practices, while China and the UK adopt the most stringent policies regarding supervision. [Display omitted] • Deposit insurance is the most consistent indicator to measure banking regulation. • The mandate of the head of the supervisory agency is the key proxy for supervision. • Using capital ratio as a single proxy is not suitable for regulation assessment. • Optimal variable transformation is used to deal with variables of mixed measurement. • China's regulation and supervision practices differ from most countries in the sample. [ABSTRACT FROM AUTHOR]

The crisis triggered in 2007-2008 in the USA and then globally manifested strongly and affected many areas and categories of people. Through its specific features, it proved that the current regulatory system is no longer viable and it has to be reformed so that in the future to alleviate some of the negative effects felt in the context of the last international financial and economic crisis. The measures adopted were aimed at the fiscal, monetary and the income policy. Only used in combination, these policies proved effective under crisis conditions and determined the economic recovery.

With regard to the need for improving international relations, exchanges and cooperation in the Iranian banking system after lifting the sanctions, banking supervision is expected to enhance and implement the latest banking standards and requirements so as to facilitate the engagement of foreign banks and investors in the country, which in turn would pave the way for Iranian involvement in the international arenas. This will not be realized unless legal, institutional and regulatory measures are taken within the banking system aimed at building a proper business environment. This study attempted to develop a conceptual model for regulatory governance over Central Bank of Iran in line with enforcement of the 20-Year Vision and the general policies of Resilience Economy. The methodology is based on a qualitative approach as well as Grounded Theory. The statistical population consists of 21 experts and specialists familiar with the banking and regulation literature selected through a judgemental sampling approach. In this study, data were collected using semi-structured interviews. Then, the data were analyzed through a coding technique derived from Grounded Theory using Atlasti. Finally, the dimensions of the new model were explained. The reliability and validity of the data were obtained through participant review and non-participant expert review, which were highly reliable. The core theme of this study was resilient regulatory governance, the dimensions of which were explained with regard to the causal and mediator conditions. Then, the strategies were developed and final model was presented. At the end, it was suggested that a resilient regulatory governance should be implemented through revising the laws and regulations, establishing the banking codes and regulation, designing an integrated financial policy system, institutionalizing an integrated financial policy system, reforming the banking sector, strengthening the banking supervision and expanding an appropriate banking conduct based on prescriptions of the Central Bank.

The main objective of this work is to highlight the role that the methods and techniques for the management of banking risks have in internal process the capital adequacy at risk in the future and to reflect the continued growth of the banking risks in the contemporary age, in conjunction with the intensification of cooperation that led to the internationalizing of regulations, within the meaning of the development of national rules in accordance with the principles accepted by several countries, the kind of international groups of studies organized by the Bank for International Settlements the Basel Convention or the application of Community rules, drawn up in the form of the Directives of the European Communities. The work has the research field the theoretical and practical aspects of the completion of the internal process the capital adequacy at risk in banks.

The article is devoted to the international experience of bank supervision. Namely, it is about the main principles of banking regulation in the United States. It describes the supervisory practice in different countries and the fundamental problem of the Russian banking sector.

In addition, amendments have been made such that the notice issued by MAS may apply to a single bank incorporated in Singapore (in addition to a class of banks incorporated in Singapore). The new s. l OC of the BA formalises MAS's power to impose such funding requirements on banks to ensure a bank has a stable and sustainable funding structure for its activities. [Extracted from the article]

An analysis of business models of participant banking groups allows one to further understand the organization of banking business and the risks associated that a financial institution encounters, during its financial transactions/ activities. The study has showed that certain banking groups are implementing similar business models and risk concentration areas, the understanding of which allows the regulator to increase the efficiency of supervision on a consolidated basis and ensure the stability of the financial/banking system. Based on the clustering method, four types of business models of the banking groups in Ukraine are identified: universal, corporate, corporate with retail financing, retail. Some "small banking groups" are classified as non-typical functional. Empirically,it is proved that method of mathematical clusterization should be supplemented by the method of grouping by the factor levels,which further allows the probability to allocate by groups , whose average indicators confirm the belonging of the given banking group to be related to a certain typical business model. For assessing stability of banking groups, the canonical model "Risk-Stability" has been built and studied. Its analysis allows asserting that the banking groups belonging to a corporate business model have relatively high credit and currency risks, and therefore the regulator needs to carefully monitor how the bank increases its requirements to capital and profitability according to the increase in the acceptable risk. Also, in each business model, individual banks have been identified whose activity involves a highest risk. For assessing stability of banking groups, the canonical model "Risk-Stability" has been built and studied. Applying fuzzy logic methods has allowed to substantiate applying enhanced banking supervision over the activities of individual banking groups.

This paper gives a review of the stress testing methodology developed by the National Bank of Ukraine (NBU) in cooperation with the International Monetary Fund (IMF) for assessing the robustness of the Ukrainian banking sector, following one of the largest economic downturns in Ukrainian history. It starts with a brief summary of stress testing approaches and methods used throughout the world, their classifications, and key features. It then moves on to give an overview of the stress testing approach applied by the NBU, concluding with remarks as to the specificity of this approach and avenues for further development.

Actuality: The empirical studies on the impact of the supervision on the stability of the banking sector are mitigated, varying depending on the particular characteristics of the bank and, in addition, the country's policy in which banks operate. This is why this study is important for the banking sector in Moldova. Purpose: The objective of this article is to studies the effects of the banking supervision on the risk-taking of banks and, consequently, the stability of the banking sector in Moldova. Methods: To order to achieve its purpose, the author applied the method of static panel data with random effect. Results: This empirical analysis reported the following results: increased restrictions on the activities of banks increases the stability of the banking sector. On the other hand, the power and independence of the supervisory authority have a negative impact on the stability of Moldovan banks. The increase of the capital level strengthens the stability of Moldovan banks and, at the same time, reduces the risk. Thus, capital regulations are an important pillar of the policy of the regulation of the banking sector of Moldova.

The current paper analyses the latest measures taken by the main European governing bodies with regard to the banking supervision across the European Monetary Union (EMU) following the ‘sovereign debt crisis’ phenomenon and its continuing effects throughout the Euro zone for the last five years. Officially preaching financial integration in order to ensure stability of the European banking system, most often the European governing bodies amplify the exact phenomena they expect to reduce doing more harm to both creditors and depositors and ultimately leading to a more fragile business banking environment. The importance of banks is acknowledged at European institutional level as main channel through which the monetary policy is triggered across EMU, therefore active measures have been taken in this regard. Questioning the extent to which these measures are legitimate and meet the purposes that they claim, constitutes the aim of the present paper. Another close linked purpose is a better understanding of what stability means, why it is important and what makes stability occur in a banking system. Having understood and set the theoretical grounds, it therefore follows easily to analyse through this glance the latest actions pursued by the European financial governing bodies focusing on the ones addressing supervision of the banking sector within EMU. The paper concludes and provides a set of recommendations by reminding the nature and role of banks for the real economy, the same objective the European financial governing bodies’ target, but which they consistently fail to meet.

The article is devoted to comprehensive analysis of the concept of professional motivated judgment applied regulator (Bank of Russia) in respect of a credit institution. This concept (category) is considered in a variety of ways: as the approach used in international banking practice, as an institution of banking supervision, assessment, assign to the Bank of Russia credit institution on the basis of the analysis of numerous fi nancial parameters of activity of the latter, ownership structure, the risks taken, as well as objective economic factors. The article discusses the main directions of banking supervision, in which there are elements of professional professional judgment and objectives of its issuance.

The article is devoted to a comprehensive analysis of the concept of professionally motivated judgment applied by regulator (Bank of Russia) in respect of a credit institution . This concept (category) is seen in a variety of ways: as the approach used in international banking practice, as an institution of banking supervision, as assessment assigned by to the Bank of Russian to a credit organization, on the basis of analysis of numerous financial parameters of the latter, the ownership structure, the risks taken and the objective economic factors. The article discusses also the main directions of banking supervision, which includes elements of professionally motivated judgments as well as the goals of the latter.

The article is devoted to a comprehensive analysis of the concept of professionally motivated opinion applied by regulator (Bank of Russia) in respect of a credit institution. This concept (category) is seen in a variety of ways: as the approach used in international banking practice, as an institution of banking supervision, as assessment assigned by to the Bank of Russian to a credit organization, on the basis of analysis of numerous financial parameters of the latter, the ownership structure, the risks taken and the objective economic factors. The article discusses also the main directions of banking supervision, which includes elements of professionally motivated opinions as well as the goals of the latter.

The economic crisis has affected all types of banking products and services, business models, and evaluation methods known. Increasingly in the banking industry uses the term "prudential banking rules" to emphasize the need for rules to ensure that the legal framework for banking activity and responsible relationships between inheritances banks and customers. The need for a prudential attitude imposed on banks by reglemetări arise, primarily from banks ' role in the economy.

The Great economic crisis influenced the need to reconsider ECB strategy and open some conceptual theoretical dilemmas. The first one is about the need to raise inflation target from 2% to 4% in order to create more space in the period of financial and economic disorder. Also in the theory is considered the possibility to use aggregate price level as the target. The third dilemma is connected with targeting assets market respectively property price (like stocks and bonds) in the manner of targeting inflation rate in normal circumstances, while property prices would be followed in extraordinary crisis circumstances. ECB uses the set of market-oriented indirect instruments in order to actualize price stability as primary goal. As the integration of EU bank system became an obstacle to approach relying on responsibility decentralization for performing bank supervision, its reform is being implemented. It leads to establishing the new supervisory framework for EU - European System of Financial Supervision and European Systemic Risk Board. Respectively, under the influence of the Great economic crises is established Single Supervisory Mechanism for banks, what is the first step towards bank union.