Advanced Search
MyIDEAS: Login to save this paper or follow this series

Regulation and banking: a survey


Author Info

  • G.E. Hebbink
  • H.M. Prast


This report presents an overview of the theory of regulation in general, with special attention for the regulation of banks. Two theories of government regulation are described. The first, normative, theory uses market failures as the justification of government regulation. The second, positive, theory explains the existence of regulation as the outcome of the interaction between politicy makers and pressure groups. The second half of the report is devoted to bank regulation. It is argued, that it is the combination of withdrawable deposits and illiquid, non-marketable assets that justifies regulation. The effects of regulatory policies in the form of deposit insurance, capital requirements, bank monitoring, bank closure policy as well as the optimal design of regulatory policy are discussed. From a first look at the practice of regulation it is concluded, that the theoretical recommendations are to a certain degree already applied in practice. Examples are risk-related capital requirements and deposit insurance premiums.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Netherlands Central Bank, Research Department in its series WO Research Memoranda (discontinued) with number 565.

as in new window
Date of creation: 1998
Date of revision:
Handle: RePEc:dnb:wormem:565

Contact details of provider:
Postal: Postbus 98, 1000 AB Amsterdam
Web page:
More information through EDIRC

Related research

Keywords: regulation; banking;

Find related papers by JEL classification:


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


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

Cited by:
  1. G.J. de Bondt & H.M. Prast, 1999. "Bank capital ratios in the 1990s: cross-country evidence," WO Research Memoranda (discontinued) 603, Netherlands Central Bank, Research Department.


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


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:dnb:wormem:565. 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: (Rob Vet).

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.