Regulation and banking: a survey
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.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.dnb.nl/en/
More information through EDIRC
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 references are entirely missing, you can add them using this form.