Issues in Banking Supervision and Regulation from the Perspective of a Banking Supervisor

Abstract

In recent years, financial institutions have been confronted with significant changes and developments. Generally speaking, the banks would appear to have reacted adequately, even if in some cases considerable effort was required. In the years ahead, too, the management of financial institutions should expect to be faced with new, often strategic challenges, not least on account of the move towards the completion of the internal EC market after 1992. This paper takes a look at the Second Council Directive on the coordination of banking legislation, which will have a major impact on European banking, as well as at the international accord which has meanwhile been reached on a minimum capital standard. It also discusses some of the principal developments now facing supervisory authorities, special attention being paid to the supervision of holding companies with a banking subsidiary.