Advanced Search
MyIDEAS: Login to save this article or follow this journal

Bank regulation: asking the right questions

Contents:

Author Info

  • Thomas M. Hoenig
Registered author(s):

    Abstract

    If we are to modernize our regulatory system and allow banks the flexibility to adapt to financial change, it is essential that we ask the right questions about the purposes of bank regulation. Currently, much of the regulatory debate focuses on the age-old question: Where do we draw the line between banks and other financial and nonfinancial institutions? As important as this question is, however, it begs a more fundamental question: Why do we regulate banks differently than other institutions? Unless we can answer this basic question, it is possible that we may never achieve consensus on fundamental reform and will continue to rely on an incremental, reactive approach to bank regulation.> In an article based on comments made at the 1996 Federal Reserve/Deloitte Touch Banking Symposium in Houston, Mr. Hoenig suggests that we need to look beyond traditional arguments for bank regulation that focus on protection of bank depositors and the federal safety net. In his view, a compelling reason for bank regulation is to maintain the integrity of the payments system. Focusing on the payments system provides us with insight into two aspects of the current debate over bank regulation. First, the payments system gives us a clear rationale for drawing lines between banks and other financial institutions. Second, focusing on the payments system may provide new ideas on how we should regulate banks as we move into the next century.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.kansascityfed.org/publicat/econrev/pdf/1q97hoen.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Federal Reserve Bank of Kansas City in its journal Economic Review.

    Volume (Year): (1997)
    Issue (Month): Q I ()
    Pages: 5-10

    as in new window
    Handle: RePEc:fip:fedker:y:1997:i:qi:p:5-10:n:v.82no,1

    Contact details of provider:
    Postal: One Memorial Drive, Kansas City, MO 64198
    Phone: (816) 881-2254
    Web page: http://www.kansascityfed.org
    More information through EDIRC

    Order Information:
    Email:

    Related research

    Keywords: Bank supervision ; Banks and banking;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Mohamed A. Ramady, 2009. "Evolving banking regulation and supervision: A case study of the Saudi Arabian Monetary Agency (SAMA)," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 2(3), pages 235-250, August.
    2. Lee, B.C. & Longe-Akindemowo, O., 1998. "Regulatory Issues in Electronic Money: A Legal-Economics Analysis," Economics Working Papers wp98-02, School of Economics, University of Wollongong, NSW, Australia.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:1997:i:qi:p:5-10:n:v.82no,1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.