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Modernizing Financial Regulation: The Relation Between Interbank Transactions and Supervisory Reform

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Financial Modernization and Regulation

Abstract

“Modernized” financial firms are larger than traditional institutions, and they provide a broader range of services. Although the individual regulatory issues raised by modernization are not new, the pace and scope of these market changes may imply a qualitative change in the ability of governments to guarantee financial system stability. Private market discipline is more flexible, and the value of flexibility seems to have risen. In order to elicit private monitoring, however, governments must credibly eschew “too-big-to-fail” policies. Toward this end, national regulators should encourage ongoing efforts to implement secure interbank settlement systems.

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Author information

Authors and Affiliations

  1. Finance University of Florida, Gainesville, USA

    Mark J. Flannery (NationsBank Eminent Scholar)

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  1. Mark J. Flannery
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Editor information

Editors and Affiliations

  1. Federal Reserve Bank of Atlanta, USA

    Robert A. Eisenbeis

  2. Federal Reserve Bank of San Francisco, USA

    Frederick T. Furlong  & Simon Kwan  & 

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© 2000 Springer Science+Business Media New York

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Flannery, M.J. (2000). Modernizing Financial Regulation: The Relation Between Interbank Transactions and Supervisory Reform. In: Eisenbeis, R.A., Furlong, F.T., Kwan, S. (eds) Financial Modernization and Regulation. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-5228-1_2

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  • DOI: https://doi.org/10.1007/978-1-4757-5228-1_2

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-4964-6

  • Online ISBN: 978-1-4757-5228-1

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