scholarly journals Belgium: Formalization and Incremental Development of a Supervisor with Increasing Powers and Authority

2021 ◽  
pp. 99-112
Author(s):  
Eiji Hotori ◽  
Mikael Wendschlag ◽  
Thibaud Giddey
Keyword(s):  
Financial Institutions ◽  
Banking System ◽  
Interesting Case ◽  
Financing Policy ◽  
Supervisory System ◽  
Incremental Development ◽  
State Financing ◽  
Similar Basis ◽  
Financial Groups ◽  
Second World

AbstractThe formalization process of Belgian banking supervision provides an interesting case. Mixed international influences as well as major domestic reforms influenced the direction of formalizing the supervisory system. It began in the middle of the 1930s as a consequence of the economic and financial crisis at the beginning of the decade. The reforms undertaken in 1934 and 1935 transformed the Belgian banking system from a free and unrestricted market, featuring very influential financial groups operating universal banking, to a supervised and more specialized banking system. However, based on our understanding of “formalization,” the process was not completed until the mid-1970s, because newly created formal supervision agency—the Banking Commission—initially functioned with very little resources and powers on a similar basis as its Swiss equivalent. In the post-Second World War era, the Belgian banking supervisor developed significantly, and its influence reached beyond mere prudential supervision. By the mid-1970s, the Banking Commission got involved in monetary and state financing policy, and the agency obtained the supervision of additional financial institutions.

scholarly journals France: Credit Control and Formalization of Banking Supervision

2021 ◽  
pp. 113-124
Author(s):  
Eiji Hotori ◽  
Mikael Wendschlag ◽  
Thibaud Giddey
Keyword(s):  
Financial Regulation ◽  
Banking System ◽  
Control Policy ◽  
Banking Supervision ◽  
Supervisory System ◽  
Minimum Capital ◽  
Minimum Capital Requirement ◽  
Vichy Regime ◽  
Policy Measures ◽  
Second World

AbstractThe banking supervision in France was formalized with the Banking Acts of 1941 and of 1945. In 1941, the Banking Control Commission as the supervisory agency was created, and rigid financial regulation such as a minimum capital requirement and a separation of banking types was introduced. In connection to the 1941 Act, the four largest commercial banks in France were also nationalized. However, with the German occupation and the wartime situation, the formalization of banking supervision was only completed with the Banking Act of 1945. The essential contents of the 1941 Act were upheld, but the supervisory agency was given a lot of measures to enforce bank regulation. Especially, authorization of rigid penalties enhanced effectiveness of supervisory activities. The main drivers of the formalization of banking supervision in France were the policy measures undertaken during the Vichy regime and the Liberation Government's measures. In the post-Second World War era, the banking supervisory system was used mainly to enforce credit control policy actions, in a period of economic recovery and reconstruction. The banking act of January 1984 decompartmentalized the banking system and changed the institutions of supervision.

scholarly journals Blockchain Disrupting Fintech and the Banking System

Proceedings ◽  
2021 ◽  
Vol 74 (1) ◽  
pp. 24
Author(s):  
Eduard Alexandru Stoica ◽  
Daria Maria Sitea
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Big Data ◽  
Financial Institutions ◽  
New World ◽  
Great Part ◽  
Banking System ◽  
Daily Activities ◽  
Blockchain Technology ◽  
Almost All

Nowadays society is profoundly changed by technology, velocity and productivity. While individuals are not yet prepared for holographic connection with banks or financial institutions, other innovative technologies have been adopted. Lately, a new world has been launched, personalized and adapted to reality. It has emerged and started to govern almost all daily activities due to the five key elements that are foundations of the technology: machine to machine (M2M), internet of things (IoT), big data, machine learning and artificial intelligence (AI). Competitive innovations are now on the market, helping with the connection between investors and borrowers—notably crowdfunding and peer-to-peer lending. Blockchain technology is now enjoying great popularity. Thus, a great part of the focus of this research paper is on Elrond. The outcomes highlight the relevance of technology in digital finance.

Critical Analysis of the Zero Risk Weight Privilege for European Sovereign Debt in Light of Art. 124 TFEU

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Patrick Hauser
Keyword(s):  
Financial Institutions ◽  
Sovereign Debt ◽  
Banking System ◽  
Financial System ◽  
Significant Risk ◽  
Capital Adequacy ◽  
Individual Member ◽  
Member States ◽  
The Individual ◽  
Credit Institutions

AbstractThe zero risk weight privilege for European sovereign debt in the current capital adequacy requirements for credit institutions incentivises credit institutions to acquire and hold sovereign debt. However, it also poses a significant risk to the stability of the banking system and thus the financial system as a whole. It is argued that this privilege should not only be abolished due to the risk it entails but that it is also non conformant with EU primary law. Art. 124 TFEU prohibits privileged access of the EU and Member States' public sector to financial institutions except for prudential considerations. The protective purpose of Art. 124 TFEU to ensure sound budgetary policies by subjecting public borrowing to the same rules as borrowing by other market participants is thwarted by the uniform zero risk weight privilege. Further, as this privilege does not take into account the varying creditworthiness of the individual Member States it does not promote the soundness of financial institutions so as to strengthen the soundness of the financial system as whole, but rather endangers systemic stability. The zero risk weight privilege is therefore not based on prudential considerations and hence violates Art. 124 TFEU.

scholarly journals Pola dan Perkembangan Perbankan Syariah di Indonesia

2019 ◽  
Vol 3 (1) ◽  
pp. 34-41
Author(s):  
Ahmad Khoirin Andi
Keyword(s):  
Financial Institutions ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks

The development of Islamic banking in Indonesia with the complexity of the problem in its journey has shown good results and as a reference for the pattern and strategy for developing financial institutions. Islamic banking with its (the) sharia principles of avoiding usury practices and prioritizing mutual benefits have proven to be a complete banking system. But besides that, additional supervision is needed to ensure the implementation of sharia principles, namely by the existence of a sharia supervisory board (DPS) to implement fatwas as guidelines for the operation of Islamic banks issued by the National Sharia Council (DSN).

scholarly journals Open issues and perspectives of the present arrangements between FR of Yugoslavia and international financial institutions

2003 ◽  
Vol 46 (1-2) ◽  
pp. 55-72
Author(s):  
Pero Petrovic
Keyword(s):  
Financial Institutions ◽  
Free Market ◽  
Banking System ◽  
Macroeconomic Policy ◽  
Legal Framework ◽  
International Financial Institutions ◽  
Open Questions ◽  
Foreign Countries ◽  
Definition Of ◽  
New Framework

The economic-financial relations with foreign countries and organizations and that is include transition of the Yugoslav politics and it is complex subject about characteristics of the actual arrangements of the FR Yugoslavia with international financial institutions and organizations and that is only one important part. But interrelations that processes is obviously for this article main subject are open questions and dealed with it a perspective of the future arrangements. We must take micro and macroeconomic measures dealed with problems of our society and economy that arrangements will be important factors of the development of the economic development. International Monetary Found is concluded that FR of Yugoslavia have a great successes in the reforms of macroeconomic policy and in the first part dealing with inflation and growth of the currency reserves and growth of the industry production. Dealing with new macroeconomic policy bring the results and new tax politics and liberalization of the tax policy an currency system at the beginning of this year. New framework of the privatization and definition of banking system there is create a new legal framework with goal of transformation economy to free market economy.

scholarly journals Governance of Vietnam's Financial Institutions in Accordance with International Standards until 2020

2016 ◽  
Vol 23 (01) ◽  
pp. 50-76
Author(s):  
Huong Tram Thi Xuan ◽  
Canh Nguyen Phuc ◽  
Nhu Nguyen Tu
Keyword(s):  
Multiple Regression ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking System ◽  
Commercial Banking ◽  
International Standards ◽  
Bank Performance ◽  
Related Factors ◽  
Regression Approach ◽  
Shed Light

In this article, using a combination of risk-related factors, we address the governance of financial institutions, mainly Vietnam’s commercial banks, in light of such international standards as of Basel II and III. Additionally, we employ multiple regression approach to shed light on the effect of each type of risk on bank performance and propose a few recommendations for effectively governing the commercial banking system of Vietnam until 2020.

scholarly journals Banking operations as an object of administrative and legal protection

2018 ◽  
Vol 81 (2) ◽  
pp. 28-37
Author(s):  
M. Y. Bukreev
Keyword(s):  
Financial Institutions ◽  
Banking Sector ◽  
Banking System ◽  
Legal Protection ◽  
Legal Regulation ◽  
Practical Significance ◽  
Legal Norms ◽  
The Past ◽  
The Subject ◽  
Banking Operations

The subject matter of the research is the relations that are formed in the process of banking operations. It has been substantiated that banks and the banking system are among the most important financial institutions, which proper and stable functioning influences on all other spheres of life in the state. It is proved by the consequences of crises in the banking sector that have occurred in Ukraine over the past few years. Awareness of the importance of this area and the possible consequences of unlawful encroachments have determined the need to search for all legal means for combating delicts in the sphere of banking operations. Understanding the fact that one can achieve significant results in the sphere of protecting banking operations by administrative and legal means, has necessitated this scientific study. In order to analyze banking operations as an object of administrative and legal protection, the author has fulfilled the following tasks. The author has highlighted the use of the concepts of “protection” and “administrative and legal protection” in the context of their implementation in relation to banking operations. The foundations of Ukrainian and international administrative and legal regulation of protecting relations in the sphere of banking operations have been revealed. The essence and features of banking operations influencing the understanding of the sphere of protected relations have been outlined; and the content of administrative and legal protection of relations in the field of banking operations has been revealed. It has been noted that there is an extensive system of banking legislation on legal norms in Ukraine regulating banking operations that require legal protection. The practical significance of the obtained results of the article is determined by the substantiated provisions for improving the approaches to increase the efficiency of the administrative and legal protection of the relations in the sphere of banking operations. A number of practical results of the research can be used while studying administrative and legal means of protecting relations in the field of banking operations.

Institution of Banking Pension Provisions: Preconditions, Nature, Competition with Traditional Institutions

2015 ◽  
Vol 2015 (2) ◽  
pp. 27-55
Author(s):  
Yuriy Ezrokh
Keyword(s):  
Financial Institutions ◽  
Pension Fund ◽  
Pension System ◽  
Pension Reform ◽  
Banking System ◽  
Pension Funds ◽  
Econometric Analysis ◽  
Traditional Institutions ◽  
State Pension ◽  
Pension Benefits

The article analyzes the pension reform implemented in Russia in 2013–2014, provides the modeling of possible pensions, determines the efficiency boundaries for the use of insurance and savings-insurance schemes offered by the Pension Fund of Russia. The author examines the activities and effectiveness in managing pension savings and reserves from non-state pension funds, especially the system of voluntary savings insurance. The study identifies the challenges faced by these financial institutions, which constrain the development of the Russian pension system. Drawing on logical and econometric analysis the author identifies the competitive opportunity for banks to participate in the Pension Benefits Act, calculates the proposals’ efficiency for future retirees and the banking system as a whole, determines the contribution of the proposed solutions to enhanced competition and more competitive banking environment.

FINRA fines broker-dealer for failing to apply Class A sales charge waivers for certain eligible customers on its mutual fund platform

2014 ◽  
Vol 15 (4) ◽  
pp. 53-56
Author(s):  
Richard F. Kerr
Keyword(s):  
Mutual Funds ◽  
Financial Institutions ◽  
Mutual Fund ◽  
Design Methodology ◽  
Content Type ◽  
Supervisory System ◽  
Enforcement Action ◽  
Class A

Purpose – To review FINRA enforcement action taken against a broker-dealer over failure to waive mutual fund sales charges for certain eligible customers and failure to establish, maintain, and enforce a supervisory system and written procedures reasonably designed to ensure eligible accounts received sales charge waivers as set forth in the mutual funds’ prospectuses. Design/methodology/approach – Reviews and summarizes FINRA’s finding’s regarding the broker-dealer’s failure to apply applicable mutual fund sales charge waivers, deficiencies in the broker-dealer’s supervisory system and written procedures resulting in the failure, resulting violations of FINRA rules, the broker-dealer’s remedial efforts, and the sanctions imposed. Findings – This settlement provides an important reminder for FINRA member broker-dealers of the need to ensure that eligible investors receive applicable sales charger waivers or are placed in the appropriate share class, and to establish, maintain, and enforce a supervisory system and written procedures reasonably designed to ensure eligible accounts received sales charge waivers as set forth in the mutual funds’ prospectuses. Originality/value – Practical explanation from experienced financial institutions lawyers.

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