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6 X 10.5 Long Title.P65 Cambridge University Press 978-0-521-85576-1 - Rethinking Bank Regulation: Till Angels Govern James R. Barth, Gerard Caprio and Ross Levine Index More information Index “The Abolition of Restrictions on Freedom multivariate, 195 of Establishment and Freedom to time-series, 195 Provide Services for Self-Employed angels Activities of Banks and Other Madison’s, 313, 314 Financial Institutions,” 162–163 men governed by, 9, 14 Absence of Graft variable, 186 anonymity, OFCs and, 173 accidents, historical, 275 appreciation, 53 accountability APRA. See Australian Prudential democratic, 290 Regulation Authority political process, 284, 290 arbitrage. See regulatory arbitrage standards for global, 142 Argentina accounting banking crisisof,2 bank, 138–139, 351 currency altered by, 273 practices, 356 deposit insurance in, 46 standards, 60 financial crisisof,26 Accounting Practices variable, 141 instability of, 273 Africa, 29 political system of, 273 Sub-Saharan, 138 Ashantis, 274 agencies, supervisory. See supervisory Asia, 66 agencies assessments agency-cost paradigm, 59 bond, 56 aggregate index, 81, 182 court’s role in, 126 agreements supervisory core principles, 81 intergroup, 277 asset bubbles, 27, 28 international, 21 inflated, 29 Albania, 26 Japanese, 28 allocation asset markets, 28 capital, 208, 235, 309 assets credit, 50, 236 Banamex controlled, 264 resource, 19, 20, 278 Banco de Londres controlled, 264 analysis deposit insurance funds-to-total bank bank-level, 254 assets, 353 cross-country, 234, 254 diversification of, 131, 324 405 © Cambridge University Press www.cambridge.org Cambridge University Press 978-0-521-85576-1 - Rethinking Bank Regulation: Till Angels Govern James R. Barth, Gerard Caprio and Ross Levine Index More information 406 Index assets (cont.) bank(s). See also central bank; foreign fixed, 25 banks; government owned banks; illiquidity of, 54 unit banks market value of, 130 accessing credit of, 212 ASTC. See Australian Securities and accounting, 138–139, 351 Investments Commission activities of, 103–106 asymmetry. See information asymmetry analysis, 254 Atchafalaya Railroad and Banking behavior, 136 Company, 268 capitalization of, 227 audit commercial, 319, 320, 321 external, 323, 354 competition, 51, 110 financial statements, 137 compliance rules of, 182 required, certified, 350 corruption, 236, 238, 241 variables, 80 data on, 12, 234 auditors destabilization of, 27 independent, 56 disclosure rules, 184 licensed/certified, 80 econometric studies on, 2 negligence of, 145 economic growth influenced by, 178 silence of, 145 economic volatility influenced by, 178 Australia, 93. See also Twin Peaks model entry restrictions on, 49–52, 113, 254 (Australia) 93 failing of, 2 Australian Prudential Regulation federally chartered, 38 Authority (APRA), 93 government examination of, 56 Australian Securities and Investments government paper held by, 39 Commission (ASTC), 93 government seizure of, 39 Austro-Hungarian Empire, 282 improving, 4 authoritarianism. See political independence of, 56, 96–98, 102, 128, authoritarianism 212, 349 authority. See supervisory authority information asymmetry and, 23, 24 autocratic regimes, 15, 265, 283, 305 information technology and, 8 averages. See economic/currency unions laissez-faire approach to, 19 status averages;income level/ licensing of, 102, 265 development status averages; liquidation of, 113, 329 OECD/WTO/Offshore status loan prohibition by, 132 averages; regional averages moral hazard and, 47 nonbank financial firms owning, 106–107, bailouts 334 cost of, 136 non-chartered, 266 election, 44 nonfinancial firms owned by, 106, 107, Banamex, 263 209, 323, 333 assets controlled by, 264 nonfinancial firms owning, 106 board of directors of, 264 oversight of, 4, 8, 12, 13, 128, 245 non-governmental loans by, 264 ownership of, 52, 148, 250, 321 Banco Ambrosiano, 64 politicians’ use of, 41 Banco de Londres, 264 poverty and, 2, 178 assets controlled by, 264 predator type, 115 Banco Latino, 27, 49 private interest view of, 20, 56 Banco Nacional de Mexico. See Banamex privately owned, 155 banditry. See roving banditry private sector monitoring of, 12, 15, 47, Bangladesh, 212 61, 136–139, 189, 198 Banixco, 265 public interest view toward, 18–19 © Cambridge University Press www.cambridge.org Cambridge University Press 978-0-521-85576-1 - Rethinking Bank Regulation: Till Angels Govern James R. Barth, Gerard Caprio and Ross Levine Index More information Index 407 receivership of, 329 restrictions on, 47–52, 102, 113, 254 regressions, 228 screening for, 209 regulatory variables of, 331–333 bankers resource allocation by, 19, 20, 278 Federalist, 267 restrictions on, 47–49, 102 government expenditures and, 35 risk characteristics of, 31 high return sought by, 27 self-funding by, 53 impeding freedom of, 229–235 social welfare promoted by, 9 influence attempts by, 8 society and, 8 political pressure from, 55 supervisors captured by, 236 risk-taking by, 23 supervisory agencies monitoring of, 59 rogue, 49 uniform standards for, 309 Bank for International Settlements (BIS), universal, 48 64 U.S. private, 34 bank fragility, 4, 32, 213, 214, 217, 218, 314 valuation of, 247, 252 Basel Capital Accord reduction of, 222 variables influencing, 14, 103, 331–333 cross-country differences in, 222 widely held, 250 moral hazard and, 221 bank charters, 266 reducing, 215 renewal of, 266 banking bank development, 4, 185 BCP and cross-border, 360 Canada’s, 211 commerce and, 47 cross-country analysis of, 234, 254 competition in, 110 determinants of, 206 cross-border trade in, 171 economic development and, 194 entry requirements into, 110–115 Egypt’s, 211 Europe’s early, 36 exclusions of, 185 foreign entry into, 110, 111, 113, 254, exogenous determinants of, 190, 191 335 improvements in, 185 globalization of, 83 policies associated with, 196 government intervention in, 21, 25, 284 predictions of, 186 law (1936), 51 regressions, 192, 194 market, 163 regulation/supervision and, 190, 195 Mexico’s, 263 shortcomings of, 185 monopolies, 209, 266, 268 bank efficiency, 224 OFCs legitimacy in, 174 approaches to, 226 personnel, 85 debates about, 225 real estate and, 322 improving, 228 reforms of, 281 increasing, 310 requirements, 335 indicators of, 224 systemicfailures in, 213 bank entry U.S. free, 269 applications, 336 U.S. history of, 260, 265 capital requirements for, 52–55, 319 vulnerability, 31 denial rates of, 114 World Survey’s entry into, 319 destabilizing influence of, 49 banking activity regulatory variables, 361, domestic denials of, 336 365, 370, 374 foreign, 110, 111, 113, 254, 335 banking crisis foreign denials of, 337 Argentine, 2 industry barring of, 50 capital stringency and, 221 limits on, 49 Chilean, 2 public interest view of, 49 costs of, 2 requirements for, 110–115 defined, 26 © Cambridge University Press www.cambridge.org Cambridge University Press 978-0-521-85576-1 - Rethinking Bank Regulation: Till Angels Govern James R. Barth, Gerard Caprio and Ross Levine Index More information 408 Index banking crisis(cont.) bank runs deposit insurance and, 214, 220 model of, 24 Dominican Republic’s, 57 shocks and, 24 Indonesian, 2, 57 susceptibility to, 58 international, 1 bankruptcy, 227 Japanese, 2 Bankscope database, 62, 248 reduced output of, 26 bank-specific control variables, 226 regressions, 215 bank stability, 206 results of, 214–224 deposit insurance and, 219 Venezuelan, 27 Basel Capital Accord (1988), 3, 64, 222 banking policies bank fragility reduced by, 222 approach to, 8 capital ratios and, 65 determinants of, 6 capital requirements inline with, government implementation and 118 enforcement of, 14 countries complying with, 116 improving, 15 criticism of, 68 influence of, 2 definitions, 322 interventionist, 13, 18 EU’s adoption of, 164 political economic forces and, 15 guidelines, 115 political institutions and, 10 impact of, 65, 116 social welfare and, 15, 271 inadequacy of, 311 banking sector moving away from, 54 determinants in, 261 private sector monitoring and, 60 policy mechanisms, 224 regulatory regime pre-, 66, 75 uncompetitive, 50 risk and, 65, 116 banking systems. See also bank fragility zero risk weighting and, 313 early Western, 30 Basel Committee Concordat, 161 emergency measures with, 213 Basel Committee on Bank Supervision, 3, environment within, 148 21, 69, 222 fractional reserve, 25 best practice standards of, 72, 73, 81 global, 21, 83 establishment of, 64 resource allocation by, 19, 20, 278 goal of, 71, 116 solvency of, 33, 102 members of, 64 stabilizing, 13, 221 recommendations of, 178, 179 U.S.,29 regulatory convergence and, 63–74 bank managers/owners, 140 Basel Core Principles (BCP), 66, 81 Bank of Credit and Commerce attention paidto,82 International (BCCI), 29, 115 cross-border banking, 360 Bank of England, 32 deposit insurance variables, 364 bank officials, corruption of, 236, 238 essential elements of, 82 Bank of Finance, 32 external governance variables, 364 Bank of New York, 266 FSAP and, 81 Bank of the Manhattan Company, 267 information requirements, 360 Bank of the Netherlands, 32 licensing and structure, 359 Bank of the United States objectives, autonomy, powers, resources, first, 268 359 second, 268 OFC’s compliance with, 174 Bank of Virginia, 268 regulations/requirements, 359–360 bank regulations. See regulations; remedial measures and exit, 360 regulations and supervision; supervision, 67, 360 regulations, private interest view; wisdom embodied in, 99 regulations, public interest view Basel I. See Basel Capital Accord (1988) © Cambridge University Press www.cambridge.org Cambridge University Press
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