Abstract
This chapter is concerned with the implementation and supervision of prudential regulations relating to banks (discussed in Chapter 3). Various domains of supervision are addressed. They cover, in particular, internal control and audit, external audit, public oversight and market discipline.
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Notes and References
For a comparative analysis of supervisory principles, see BCBS, Core Principles — Cross Sectoral Comparison, BIS, Basel, November 2001.
See BCBS, Internal Audit in Banks and the Supervisor’s Relationship with Auditors, August 2001
also BCBS, Internal Audit in Banks and the Supervisor’s Relationship with Auditors: A Survey, BIS, Basel, August 2002.
Bank of England, Report of the Board of Banking Supervision Inquiry into the Circumstances of the Collapse of Barings, London, July 1995.
BCBS, The Relationship between Banking Supervisors and Banks’ External Auditors, BIS, Bank for International Settlements, Basel, January 2002.
Senator Carl Levin, ‘Senate Subcommittee Report Charges U.S. Financial Institutions with Aiding Enron Deceptions’, Press Release, Washington, DC, 2 January 2003 (http://levin.senate.gov).
See Mark Kessel, ‘Training Auditing Watchdogs to Bark’, Financial Times, 21 December 2001, p. 12.
See J. Carvana, A. Crockett, D. Flint, T. Hans and T. Jones, Enron et al: Market Forces in Disarray, Group of Thirty, Washington, DC, 2002, 54 p.
See, for example, ‘On-site Examination Policy in Fiscal 2001’, Quarterly Bulletin (Tokyo: Bank of Japan, May 2001), pp. 147–51; Bank of Japan, Annual Review 2002 (Tokyo, 2002), pp. 28–38
Japanese Bankers Association, The Banking System in Japan (Tokyo, March 2001), pp. 1–12; and ‘Japan’s Recent Monetary and Structural Policy Initiatives’ in International Monetary Fund, World Economic Outlook (Washington, DC: IMF, May 2001), pp. 19–20.
See, for example, Stuart I. Greenbaum and Anjan V. Thakor, Contemporary Financial Intermediation, (Orlando, Fl: Dryden Press, 1995), p. 66.
Anil K. Kashyap, ‘Sorting out Japan’s financial crisis’, Economic Perspectives, Federal Reserve Bank of Chicago, 2002, 4th quarter p. 42–55.
See ‘Discussants Weigh Impact of Foreign Participation in Financial Systems of Developing Countries’, IMF Survey (Washington, DC: IMF, 21 May 2001), pp. 173–5; and J. S. Crystal, B. G Dages and L. S. Goldberg, ‘Has Foreign Bank Entry Led to Sounder Banks in Latin America?,’ Current Issues in Economics and Finance, Federal Reserve Bank of New York, January 2002.
See C. W. Calomiris and R. E. Litan, ‘Financial Regulation in a Global Marketplace’, Brookings–Wharton Papers on Financial Services, Washington, DC, 2000, pp. 283–339.
Institute of International Bankers, Global Survey 2002 — Regulatory and Market Developments, Banking-Securities-Insurance, New York, September 2002.
Federal Financial Institution Examination Council, Bank Reports — Proposed Collection of Data on Subprime Consumer Lending Programs. Washington, DC, 28 July 2002.
See R. A. Gilbert, A. P. Meyer and M. D. Vaughan, ‘Could a CAMELS Downgrade Model Improve Off-Site Surveillance?,’ Review, Federal Reserve Bank of St. Louis, January/February 2002, pp. 47–63
and BCBS, Supervisory Guidance on Dealing with Weak Banks, BIS, March 2002.
One senior bank supervisor’s rule-of-thumb is ‘any bank which has doubled its loans book in three years will fail during the next three years’; see John Hawkins and Philip Turner, ‘International Financial Reform: Regulatory and Other Issues’, in S. Claessens and K. J. Forbes (eds), International Financial Contagion, (Boston: Kluwer, 2001), pp. 431–60.
For a survey of such models, see Ranjana Sahajwala and Paul Van den Bergh, Supervisory Risk Assessment and Early Warning Systems, (Basel: BIS, December 2000).
See, for example, J. W. Gunther, M. E. Levonian and R. R. Moore, ‘Can the Stock Market Tell Bank Supervisors Anything They Don’t Already Know?’, Economic and Financial Review Federal Reserve Bank of Dallas, 2001, 2nd quarter, pp. 2–9.
See, for example, J. McAndrews and C. Stefanandis, ‘The Consolidation of European Stock Exchanges’, Current Issues, Federal Reserve Bank of New York, June 2002.
John D. Hawke, Jr, Comptroller of the Currency, ‘Fee Disparity Problem Must be Fixed’, Washington, DC, 9 May 2002.
See Donald E. Powell, chairman of FDIC, Why Regulatory Restructuring? Why Now?, Washington, DC, 16 October 2002.
John D. Hawke, Jr, Comptroller of the Currency, ‘Fee Disparity Problem Must be Fixed’, Washington, DC, 9 May 2002.
See US General Accounting Office, Bank Regulation -Analysis of the Failure of Superior Bank (Thomas J. McCool), Washington, DC, 7 February 2002.
See, for example, Pierluigi Ciocca, ‘Supervision: One or More Institutions’, Economic Bulletin, Bank of Italy, Rome, October 2001, pp. 113–16.
Board of Governors of the Federal Reserve System, Improving Public Disclosure in Banking, Study Group on Disclosure, Washington, DC, March 2000.
See, for example, Patrick Donnelly, ‘What Every Audit Committee Member Should Know’, The RMA Journal, (Philadelphia: The Risk Management Association, September 2001), pp. 48–51.
See, for example, Claudio Borio and Philip Lowe, ‘To Provision or Not to Provision’, BIS Quarterly Review, September 2001, pp. 35–48.
See, for example, Charles W. Calomiris and Joseph R. Mason, ‘Contagion Bank Failures During the Great Depression: The June 1932 Chicago Banking Panic’, American Economic Review, December 1997, pp. 863–8
and Diane S. Docking, Mark Hirschey and Elaine Jones, ‘Information and Contagion Effects of Bank Loan-Loss Announcements’, Journal of Financial Economics, February 1997, pp. 219–39.
See, for example, Andrew Crockett, BIS, Market Discipline and Financial Stability, Banks and Systemic Risk Conference, Bank of England, London, 23–25 May 2001.
See Robert M. Hunt, ‘What’s in the File? The Economics and Law of Consumer Credit Bureaus [sic]’, Business Review, Federal Reserve Bank of Philadelphia, 2nd quarter, 2002, pp. 17–24.
Financial Ombudsman Service, Annual Review 13 June 2002.
See, for example, Swiss Banking Ombudsman, Annual Report 2001, Basel, 2002.
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© 2003 Zuhayr Mikdashi
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Mikdashi, Z. (2003). Effective Supervision and Enforcement. In: Regulating the Financial Sector in the Era of Globalization. Palgrave Macmillan, London. https://doi.org/10.1057/9781403990112_4
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DOI: https://doi.org/10.1057/9781403990112_4
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