The New Financial Architecture: Banking Regulation in the 21st Century

Bank failures, crises, global banking, megamergers, changes in technology—the effect of these world events is to weaken existing methods of regulating bank safety and soundness, and even to make some methods ineffective. Federal regulators are evaluating new ways to solve them. Dr. Gup and his panel of academics and regulatory professionals explore these problems and the difficulties in implementing solutions. They point out that global banking, megamergers, and changes in technology are drastically altering the way financial services are delivered. They also argue that existing methods of bank regulation, formulated in the United States and elsewhere as early as the 19th century, are not able to cope with these changes. The search now underway for new methods that are global in scope. Inevitably, they will involve cross-border supervision and international cooperation. Covering a wide range of topics, from the rationale of banking regulation to optimal banking regulation in the new world environments, this book examines the innovative tools needed to cope with these problems. Greater reliance on market discipline; the use of internal controls based on statistical models, such as Value-at-Risk; and subordinated debt are discussed. This timely, probing analysis of one of the hottest topics in bank regulation today, is an important resource for professionals and their academic colleagues in the fields of banking, finance, investment, and world trade.

Table of Contents:
Preface Regulating International Banking: Rationale, History, and Future Prospects by Ronnie J. Phillips and Richard D. Johnson Are Banks and Their Regulators Outdated? by Benton E. Gup Designing the New Architecture for U.S. Banking by George G. Kaufman What Is Optimal Financial Regulation? by Richard J. Herring and Anthony M. Santomero The Optimum Regulatory Model for the Next Millennium-Lessons from International Comparisons and the Australian-Asian Experience by Carolyn Currie Banking Trends and Deposit Insurance Risk Assessment in the 21st Century by Steven A. Seelig Supervisory Goals and Subordinated Debt by Larry Wall Market Discipline for Banks: A Historical Review by Charles G. Leathers and J. Patrick Raines Market Discipline and the Corporate Governance of Banks: Theory vs. Evidence by Benton E. Gup Message to Basle: Risk Reduction Rather than Management by Johannes Jüttner Drafting Land Legislation for Developing Countries: An Example from East Africa by Norman J. Singer Index

About the Author :
BENTON E. GUP holds the Robert Hunt Cochrane-Alabama Bankers Association Chair of Banking at the University of Alabama. Author of more than 19 books and more than 90 articles on banking and financial topics, Dr. Gup serves as a consultant to government and industry, and was recently a visiting scholar at the Comptroller of the Currency. Dr. Gup's first Quorum book was Bank Failures in the Major Trading Countries of the World: Causes and Remedies (1998), his second was: International Banking Crises: Large Scale Failures, Massive Government Interventions (ed., 1999).