Two recurring themes arise from this discussion. The first is that financial liberalisation looks to have been much more successful than appeared to be the case a decade ago. In 1991, the Reserve Bank devoted its entire Annual Conference to a stocktake of the benefits and costs of financial deregulation (see Macfarlane (1991)). While the various papers were able to point to some benefits, inclu...

Earlier this year, European authorities agreed on the second pillar of the banking union, a single resolution mechanism, to come into effect in 2016. After the ECB taking over responsibility for bank supervision (directly for the largest, indirectly for all banks) in the Eurozone, centralizing resolution as complement for centralized supervision has been an important next step. The result is a ...

Bank leverage constraints can emerge from regulatory capital requirements as well central bank collateral in reserve lending facilities. While these two channels are usually examined separately, we able to compare them with the help of a money creation model which reserves have be acquired settle interbank liabilities. In particular, show that regard monitoring, monetary policy via leads unique...

See White (1991) for a discussion of the role of lax government supervision in the thrift debacle of the 1980s. B anking is one of the more closely supervised industries in the United States, reflecting the view that bank failures have stronger adverse effects on economic activity than other business failures. Bank failures can disrupt the flow of credit to local communities (Gilbert and Kochin...

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The development of banking supervision arrangements undergoes frequent changes due to various factors such as political conditions and socio-economic situations. Initially, bank was under the purview Bank Indonesia (BI), but it later shifted Financial Services Authority (OJK). However, this change in regulatory framework has resulted legal uncertainties regulation Sharia banking, which contradi...