5 Alternative Approaches to Regulation and Corporate Governance in Financial Firms
Author: David T. Llewellyn
Language:
English
Keywords:
SEM; market; bank; rating; market participant; market discipline; IMF surveillance; risk profile; government regulator; Financial sector stability; Credit; Credit risk; Financial Sector Assessment Program; Global; Europe; Southeast Asia; East Asia; Asia and Pacific; risk appetite; bank depositor; incentive structure; risk analysis; bank distress; Capital adequacy requirements; Moral hazard; Banking crises; Corporate governance; Deposit insurance

Abstract

The objective of this paper is to draw lessons from recent banking sector crises especially with respect to the design of an optimum “regulatory regime.” Just as the causes of banking crises are multidimensional, so the principles of an effective regulatory regime also need to incorporate a wider range of issues than externally imposed rules on bank behavior. This suggests that strategies to avoid future crises also need to be multidimensional, involving macro policy, the conduct of regulation and supervision, the creation of appropriate incentive structures, the development of market discipline, and the internal governance and management of financial institutions.

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Cover Financial Risks, Stability, and Globalization
Financial Risks, Stability, and Globalization
Author: Mr. Omotunde E. G. Johnson
ISBN:
9781589060128
Publication Date:
29 Apr 2002
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589060128.072
Pages:
570