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Banking

This category contains 16 posts

Government sets out plans to reform the structure of banking in the UK

The Government is today publishing its response to the report by the Independent Commission on Banking (ICB), which sets out plans to fundamentally reform the structure of banking in the UK. This response agrees with the ICB’s recommendations and outlines how the Government will legislate to create a stable banking sector that supports lending to [...]

UK FSA: The failure of the Royal Bank of Scotland

The Financial Services Authority (FSA) has published its Board’s Report into ‘The failure of the Royal Bank of Scotland’ (RBS). The Report concludes that RBS’s failure amid the systemic crisis ultimately resulted from poor decisions made by the RBS management and Board. But deficiencies in the global capital regime and liquidity regulations made the crisis [...]

Lessons in bank lobbying

Speech: Lessons in lobbying by Robert Jenkins. Not long ago I was a lobbyist for the investment industry. I have now joined the ranks of the regulators I once tried to lobby. Specifically, I am a member of the interim Financial Policy Committee of the Bank of England. The “FPC” is the focal point for [...]

Banking crises and recessions: what can leading indicators tell us?

By Matthew Corder and Martin Weale. Summary. Policymakers need to be aware of the risk of extreme events such as recessions and banking crises. Given the future is uncertain, monetary policy makers need to consider the full range of risks around their forecasts when considering policy, including the probability of recession. Financial stability policy makers [...]

Banking reforms: Ring-fence structure

Britain’s experiment with a new sort of bank regulation is sensible—and useful for the wider world. Like them or not, many of the most influential financial innovations of the past few decades have come from Britain: the euro-dollar market, the Private Finance Initiative and “light touch” regulation of financial firms. London cannot claim credit for [...]

The Independent Commission on Banking: Final Report

The Independent Commission on Banking has been asked to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition. Banks given until 2019 to finalise implemention of recommendations. Executive summary. This Final Report sets out the Commission’s recommendations on reforms to improve stability and competition in UK banking. [...]

Euro area cross-border financial flows and the global financial crisis

by Katrin Forster, Melina Vasardani and Michele Ca’ Zorzi. Non-technical summary. The global financial crisis that started in 2007 and intensified after the collapse of Lehman Brothers in September 2008 abruptly interrupted the more than two-decade-long process of increasing world financial integration. With the complex web of global interlinkages contributing to the spreading of the [...]

Economist debate: Does more competition make banking more dangerous?

Banking – This house believes that more competition make banking more dangerous. Banking markets across the world have become increasingly concentrated over the past few decades. In the United States, the market share of the five biggest banks has increased to 34%, from less than 8% in 1994. Banks that before the crisis were thought [...]

Technical details of a possible EU framework for bank recovery and resolution

On 6 January 2011, the European Commission released for public consultation the working document “Technical details of a possible EU framework for bank recovery and resolution”, with the a view to developing a formal legislative proposal by Summer 2011. The consultation follows the Commission’s communications on “An EU Framework for Crisis Management in the Financial [...]

International banking being changed by regulation

Chained but untamed – An Economist Special Report. The world’s banking industry faces massive upheaval as post-crisis reforms start to bite. They may make it only a little safer but much less profitable. The near-collapse of the world’s banking system two-and-a-half years ago has prompted a fundamental reassessment of the industry. Perhaps the biggest casualty [...]

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