Fordham Law Review Volume 60 Issue 6 Article 19 1992 Putting the Super Back in the Supervision of International Banking, Post-BCCI Daniel M. Laifer Follow this and additional works at: https://ir.lawnet.fordham.edu/flr Part of the Law Commons Recommended Citation Daniel M. Laifer, Putting the Super Back in the Supervision of International Banking, Post-BCCI, 60 Fordham L. Rev. S467 (1992). Available at: https://ir.lawnet.fordham.edu/flr/vol60/iss6/19 This Article is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Law Review by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact
[email protected]. PUTTING THE SUPER BACK IN THE SUPERVISION OF INTERNATIONAL BANKING, POST-BCCI DANIEL M. LAIFER INTRODUCTION Historically, banks that were chartered in a given country conducted most of their business in that domestic market. In the past decade, how- ever, financial institutions both in the United States and in other nations have rapidly expanded their overseas offices.' Indeed, banking transac- tions have become increasingly global, setting the stage for even greater transnational financial activity in the 1990s.2 This cross-border presence of banks, though, has disturbing potential to increase the risk of bank failure and reduce the soundness of international banking.3 Regulation of this now highly mobile, innovative, and risky financial environment requires supervisory finesse. While banking has become in- temational, supervision has not. Recent international bank scandals, particularly the ignoble closure of the worldwide operations of the Bank of Credit and Commerce International ("BCCI"),4 illustrate the disas- trous effects of deficient supervision of the international banking system.