Global Bank Regulation: Principles and Policies

Global Bank Regulation: Principles and Policies covers the global regulation of financial institutions. It integrates theories, history, and policy debates, thereby providing a strategic approach to understanding global policy principles and banking. The book features definitions of the policy principles of capital regularization, the main justifications for prudent regulation of banks, the characteristics of tools used regulate firms that operate across all time zones, and a discussion regarding the 2007-2009 financial crises and the generation of international standards of financial institution regulation.

The first four chapters of the book offer justification for the strict regulation of banks and discuss the importance of financial safety. The next chapters describe in greater detail the main policy networks and standard setting bodies responsible for policy development. They also provide information about bank licensing requirements, leading jurisdictions, and bank ownership and affiliations. The last three chapters of the book present a thorough examination of bank capital regulation, which is one of the most important areas in international banking.

The text aims to provide information to all economics students, as well as non-experts and experts interested in the history, policy development, and theory of international banking regulation.

Defines the over-arching policy principles of capital regulationExplores main justifications for the prudent regulation of banksDiscusses the 2007-2009 financial crisis and the next generation of international standards of financial institution regulation Examines tools for ensuring the adequate supervision of a firm that operates across all time zones

Introduction: The Global Financial System and the Problems of Regulation

1. The Changing Nature of Banks
2. Panics, Bank Runs and Coordination Problems
3. Collapsing Dominos and Asset Price Spirals
4. The Financial Safety Net and Moral Hazard
5. Sources of Bank Regulation
6. Bank Licensing and Corporate Governance
7. Bank in Corporate Groups: Ownership and Affiliation
8. Bank Capital: Why Regulate Capital
9. Bank Capital: The New Capital Adequacy Framework: Basel II and Credit Risk
10. Bank Capital: The New Capital Adequacy Framework: Basel II and Other Risk
11. Direct Controls on Risk-Taking
12. Consolidated Supervision and Financial Conglomerates
13. Anti-Money Laundering/ Countering the Financing of Terrorism
14. Bank Closures (still drafting)
15. Institutional Structure of Regulation
16. Regulation After the Global Financial Crisis

Appendix: Introduction to Economic Concepts