Long-term trends in bank regulation

• Publisher: Springer
• Year: 1989
• Tongue: English
• Weight: 876 KB
• Volume: 2
• Category: Article
• ISSN: 0920-8550
• DOI: 10.1007/bf00130735

✦ Synopsis

The regulation of banking is increasingly supplanting the supervision of banking. The regulation and supervision of banks reflects basic public policy objectives. Regulation has depended primarily on traditional restrictions on bank operations and on regulatory agencies, but capital regulation is being used to control the expansion of banking organizations. Because regulation has not succeeded in preventing bank failures, government has instituted a deposit insurance program, which has evolved into a full guarantee by the federal government of all liabilities of all depository institutions. This has given rise to a new kind of public utility regulation in banking.