Financial Stability Review
Regulatory Structure Articles
1998
2005 2004 2003 2002 2001 2000 1999 1998 1997
Capital
Regulation and UK banks' Behaviour
(231k)
(Issue 5, Autumn 1998)
This article summarises recent research on the effect of regulatory action on the behaviour of UK banks. It adds to existing studies in a number of ways, particular because it considers a non-US banking system, and a system where capital requirements are varied on a bank-by-bank basis. It employed confidential, quarterly supervisory balance sheet and income data for 94 UK banks from the fourth quarter of 1989 to the fourth quarter of 1995.
Financial
Regulations and Incentives
(148k)
(Issue 4, Spring 1998)
This article summarises a conference hosted by the Bank of England and the FSA in November 1997 which considered how incentives can best be set within firms, and externally by regulators, to minimise the risk of large losses, including fraud. It addressed the issues of remuneration policies, penalties and the role of market discipline. It also looked at the precommitment approach to regulatory capital. It concluded that while market discipline would ideally generate the right incentives, it may not always be adequate, giving regulators a necessary complementary role.
Transparency
and the Design of Securities Markets
(156k)
(Issue 4, Spring 1998)
Getting the best out of securities markets is an important concern for market authorities. Market transparency is one of the most important market design issues, but other can influence market performance: the functioning of the trading platform; the number and role of intermediaries; trading conventions; membership agreements; settlements and clearing systems. This article concentrates on transparency and looks at wider issues of market design.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
