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| Introduction: The Global Financial System and the Problems of Regulation | |
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| The Changing Nature of Banks | |
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| Definitions | |
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| Money, Credit Creation, and Fractional Reserve Banking | |
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| Financial Innovation and the Changing Nature of Banks | |
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| Three Distinctive Features of Modern Banking | |
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| References | |
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| Further Reading | |
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| Panics, Bank Runs, and Coordination Problems | |
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| The Structure of Banks' Balance Sheets | |
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| Coordination Problems and Bank Runs | |
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| Panic and Contagion in Modern Financial Systems | |
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| Free Riders and Regulation | |
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| References | |
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| Further Reading | |
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| Collapsing Dominos and Asset Price Spirals | |
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| Collapsing Dominos | |
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| Asset Price Spirals | |
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| The Global Financial Crisis of 2007-2009 | |
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| References | |
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| Further Reading | |
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| The Financial Safety Net and Moral Hazard | |
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| The Financial Safety Net | |
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| Moral Hazard | |
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| Is There an Alternative? | |
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| References | |
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| Further Reading | |
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| Sources of Financial Regulation | |
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| National Laws | |
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| International Law | |
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| References | |
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| Further Reading | |
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| Bank Licensing and Corporate Governance | |
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| The Purpose of Bank Licensing | |
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| The Fundamentals of Bank Licensing | |
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| Fitness and Propriety of Bank Management | |
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| Significant Changes in Ownership | |
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| Choice of Bank Charter | |
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| Cross-Border Issues | |
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| Principles of Sound Corporate Governance | |
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| Sarbanes-Oxley Act of 2002 | |
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| References | |
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| Further Reading | |
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| Bank in Corporate Groups: Ownership and Affiliation | |
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| Bank-Commerce Linkages | |
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| The Separation of Banking and Finance | |
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| Changes to Structural Regulation of the Combination of Banking and Other Financial Services | |
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| References | |
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| Further Reading | |
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| The Rationale for Bank Capital Regulation | |
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| Why Regulate Bank Capital? | |
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| Leverage Ratios | |
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| Risk-Weighted Capital | |
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| Criticisms of the Basel Capital Accord | |
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| References | |
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| The New Capital Adequacy Framework: Basel II and Credit Risk | |
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| The Standardized Approach | |
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| The Internal Ratings-Based (IRB) Approaches | |
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| Dealing with Financial Innovation | |
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| References | |
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| Further Reading | |
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| The New Capital Adequacy Framework: Basel II and Other Risks | |
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| Market Risk | |
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| Operational Risks | |
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| Pillar 2 Risks | |
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| References | |
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| Further Reading | |
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| Direct Limits on Banks' Risk Taking | |
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| Credit Concentration Risk | |
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| Liquidity Risk | |
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| References | |
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| Consolidated Supervision and Financial Conglomerates | |
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| What Is Consolidated Supervision? | |
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| The Need for Consolidated Supervision | |
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| Consolidated Supervision of Cross-Border Banks | |
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| Financial Conglomerates | |
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| References | |
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| Anti-Money Laundering | |
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| What Is Money Laundering? | |
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| The Impact on Banks | |
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| International Response | |
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| Banco Delta Asia Case Study | |
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| References | |
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| Further Reading | |
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| Bank Insolvency | |
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| The Goals and Types of Bank Insolvency Regimes | |
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| Legal Framework for Bank Insolvency | |
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| Determination of Insolvency | |
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| Administration Orders and Conservatorships | |
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| Receivership | |
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| References | |
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| Further Reading | |
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| Institutional Structures of Regulation | |
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| Institutional and Functional Regulation | |
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| Rise of the Integrated Regulator | |
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| Twin Peaks (Objectives) Approach | |
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| Role of the Central Bank in Bank Supervision | |
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| Evaluation of Structural Reforms | |
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| References | |
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| Further Reading | |
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| Regulation After the Global Financial Crisis | |
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| The Causes of the Crisis | |
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| Rethinking the Assumptions of Regulation | |
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| New Directions in Capital Adequacy | |
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| More Radical Options | |
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| The International Dimension | |
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| References | |
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| Appendix: Introduction to Regulation and Market Failure | |
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| Index | |