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Banking regulation around the world（II）

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I n addition to the centralised single financial regulatory system, let us look at two other types of financial regulatory systems: the two-set plurality banking regulatory system, exemplified by the United States, and the one-level plurality banking regulatory system, exemplified by France. In the US, the supervision of financial institutions is divided between the OCC, FED and FDIC. Some agencies are responsible for this(Shenghu Wang,2013). Banks in the United States are divided into federal law banks and state law banks. In recent years, in order to adapt to changes in the economic and financial environment, the US government has begun to reform this supervisory system, replacing the original system of separate regulation by institution with a system of separate regulation by financial services function.(Min Wu,2007) The French banking sector is regulated by the Banque De France, the Conseil National de la Crédit and the Commision Bancaire, which oversees compliance with banking law...
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Banking regulation around the world （I）

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The financial regulatory models of countries around the world can be broadly classified into three categories. The first category, the two-set pluralistic banking regulatory system: for example, the United States, Canada, etc. Two-tier means that both central and local governments have the power to regulate banks. For example, the US federal government and the individual state governments have the power to license and regulate banks. Multiple means that there are several regulators. For example, the US Federal Reserve Bank and the Treasury Department both have the power to regulate financial institutions. The second type of system is a pluralistic system of banking supervision: for example, France, Germany, etc. Financial supervision is centralised, but two or more institutions are responsible for financial supervision. The third type: a centralised single system of financial supervision. Examples include the UK, Singapore and China. The regulatory authority is concentrated in one cent...
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Effective banking supervision: Basel Accord

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An interesting background on bank regulation, the Basel Accord. The Basel Accord is an international standard used to determine the capital adequacy ratio of the banking industry and has been adopted by hundreds of countries and regions.  The Basel Accord was born due to the failure of two well-known international banks, Herstatt bank and Franklin National Bank. Their bankruptcy has made regulators aware of the importance of banking regulatory issues. After these two banks went bankrupt. In September 1975, the first Basel A ccord  was introduced. This accord  is relatively simple. The basic core content is to put forward two key requirements for international banking supervision. First, any bank's overseas institution cannot escape supervision. Second, the country where the subject is located and the country where the transnational is located should share responsibilities.  Basel I  clarifies the regulatory capital requirements for credit risk, and divides the c...
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What is bank supervision? Why bank supervision?

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WHAT ? In the bank supervision we often refer to, it is not just the literal meaning of "the bank is controlled." On the one hand, from a smaller perspective, bank supervision means a country’s regulatory agency, which may be the government or other agencies that manage and supervise some business activities of bank financial institutions. On the other hand, from a larger perspective, bank supervision does not only refer to these, but also includes self-management and internal supervision of bank financial institutions.(Min Wu,2004) Of course, every country in the world has different banking supervision systems. However, in general, it can be divided into two modes of supervision. First, set up an institution to specifically supervise banks. At this time, the central bank does not have the function of supervision. The second is that the central bank and other financial institutions simultaneously exercise the power to supervise banks.(Shenghu Wang,2013) WHY ? So why should we...
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