Organizational form and financial stability: lessons from cooperative banks in the US and UK

2017 ◽  
pp. 217-244
Author(s):  
Michael Marin
Keyword(s):  
Financial Stability ◽  
Organizational Form ◽  
The Us ◽  
Cooperative Banks

scholarly journals Market Structure and Financial Stability: the Interaction between Profit-Oriented and Mutual Cooperative Banks in Italy

2021 ◽  
Author(s):  
Adalgiso Amendola ◽  
Cristian Barra ◽  
Marinella Boccia ◽  
Anna Papaccio
Keyword(s):  
Market Structure ◽  
Financial Stability ◽  
Cooperative Banks

AbstractIn this study, we analyze the relation between market structure and financial stability both theoretically and empirically by considering two types of agents: profit-oriented banks and mutual cooperative banks in the context of Italy. The main findings show that under the condition that mutual cooperative banks are not dominated by borrowers, there is an inverted U-shaped relation in which a less concentrated market structure increases stability for both types of banks but a more concentrated market structure reduces it.

Private and Public Enforcement of Securities Regulation

2015 ◽  
Author(s):  
Howell E. Jackson ◽  
Jeffery Y. Zhang
Keyword(s):  
Financial Stability ◽  
Regulatory Reform ◽  
Banking Regulation ◽  
Securities Regulation ◽  
Public Enforcement ◽  
Valuation Effects ◽  
Cross Listing ◽  
The Us ◽  
Private And Public ◽  
The Impact

This chapter examines the impact of private and public enforcement of securities regulation on the development of capital markets. After a review of the literature, it considers empirical findings related to private and public enforcement as measured by formal indices and resources, with particular emphasis on the link between enforcement intensity and technical measures of financial market performance. It then analyses the impact of cross-border flows of capital, valuation effects, and cross-listing decisions by corporate issuers before turning to a discussion of whether countries that dedicate more resources to regulatory reform behave differently in some areas of market activities. It also explores the enforcement of banking regulation and its relationship to financial stability and concludes by focusing on direct and indirect, resource-based evidence on the efficacy of the US Securities and Exchange Commission’s enforcement actions.

Early Intervention

2016 ◽  
Author(s):  
Michael Schillig
Keyword(s):  
Early Intervention ◽  
Financial Institutions ◽  
Financial Stability ◽  
Corrective Action ◽  
Viable Alternative ◽  
Prompt Corrective Action ◽  
Systemic Risks ◽  
The Us ◽  
The Uk ◽  
The Impact

The Financial Stability Board recommended that all national supervisors should have the mandate and powers to identify risks and intervene early in order to prevent unsound practices and take appropriate measures to reduce the impact of potential stresses on financial institutions and to safeguard against systemic risks. Accordingly, the BRRD and SRM contain new powers for the competent authorities to intervene early before an institution’s financial and economic situation has deteriorated to a point where resolution is the only viable alternative. The chapter starts with some theoretical reflections, focusing on the incentives of the actors involved. It then discusses the early intervention framework under BRRD and SRM and national transposition in the UK and Germany. It also covers the US prompt corrective action framework and early remediation under Dodd–Frank.

1. Banks in the Financial System

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Financial Stability ◽  
Regulatory Networks ◽  
Financial System ◽  
Capital Allocation ◽  
Bank Supervision ◽  
System P ◽  
The Us ◽  
Regulatory Coordination ◽  
Definition Of

This chapter explains the economic functions and organizational structure of contemporary banking. It first discusses the role of banks in the economy, offering a brief account of the role of the financial system in capital allocation and risk management as well as key bank functions in this respect. It then details the rise and fall of the multifunctional bank in the era of globalization, and the different aspects of the too-big-to-fail bank problem and its possible causes. It explains the international nature of bank regulation and the standard-setting and regulatory coordination provided by key transnational regulatory networks such as the Basel committee on Bank Supervision and the Financial Stability Board; discusses the legal definition of the term ‘bank’ in the US and of ‘credit institution’ under EU legislation; advances a new understanding of what the term ‘bank’ means in the post-2008 era.

scholarly journals Would Macroprudential Regulation Have Prevented the Last Crisis?

2019 ◽  
Vol 33 (1) ◽  
pp. 107-130 ◽  
Author(s):  
David Aikman ◽  
Jonathan Bridges ◽  
Anil Kashyap ◽  
Caspar Siegert
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Financial System ◽  
Mortgage Lending ◽  
Financial Policy ◽  
Policy Interventions ◽  
The Us ◽  
Set Up ◽  
The Global Financial Crisis

How well equipped are today’s macroprudential regimes to deal with a rerun of the factors that led to the global financial crisis? To address the factors that made the last crisis so severe, a macroprudential regulator would need to implement policies to tackle vulnerabilities from financial system leverage, fragile funding structures, and the build-up in household indebtedness. We specify and calibrate a package of policy interventions to address these vulnerabilities—policies that include implementing the countercyclical capital buffer, requiring that banks extend the maturity of their funding, and restricting mortgage lending at high loan-to-income multiples. We then assess how well placed are two prominent macroprudential regulators, set up since the crisis, to implement such a package. The US Financial Stability Oversight Council has not been designed to implement such measures and would therefore make little difference were we to experience a rerun of the factors that preceded the last crisis. A macroprudential regulator modeled on the UK’s Financial Policy Committee stands a better chance because it has many of the necessary powers. But it too would face challenges associated with spotting build-ups in risk with sufficient prescience, acting sufficiently aggressively, and maintaining political backing for its actions.

Parish and Place

2017 ◽  
Author(s):  
Tricia Colleen Bruce
Keyword(s):  
Catholic Church ◽  
Local Level ◽  
The United States ◽  
Organizational Form ◽  
Black Catholics ◽  
Perceived Need ◽  
Latin Mass ◽  
The Us ◽  
Structural Responses ◽  
Depth Interviews

The Catholic Church stands at the forefront of an emergent majority-minority America. Parish and Place tells the story of how the largest US religion is responding at the local level to unprecedented cultural, racial, linguistic, ideological, and political diversification among American Catholics. Specifically, it explores bishops’ use of personal parishes—parishes formally established not on the basis of territory, but purpose. Today’s personal parishes serve an array of Catholics drawn together by shared identities and preferences rather than shared neighborhoods. Their contemporary application permits Catholic leaders to act upon the perceived need for named, specialist organizations alongside the more common territorial parish, designed to serve all in its midst. Parish and Place documents the US Catholic Church’s earlier move away from national parishes and more recent renewal of the personal parish as an organizational form. In-depth interviews and national survey data detail the rise and rationale behind new parishes for the Traditional Latin Mass, for Vietnamese Catholics, for Black Catholics, and more. Featuring insights from bishops, priests, and diocesan leaders throughout the United States, chapters offer a rare view of institutional decision-making from the top. The book is at once a demonstration of structural responses to diversity across wider conceptions of space, and a look at just how far fragmentation can go before it challenges cohesion and unity.

US tax reform advantages the Republicans, for now

2017 ◽  
Keyword(s):  
Stock Prices ◽  
Republican Party ◽  
Financial Stability ◽  
Budget Deficit ◽  
Tax Reform ◽  
The United States ◽  
Content Type ◽  
Oil Drilling ◽  
The Us ◽  
Tax Returns

Significance The sweeping tax reform is US President Donald Trump’s first major legislative victory. Although the bill met strong opposition, and criticism from many leading economists, Trump secured support from his fellow Republican party legislators in Congress. The bill, the first major federal tax reform since 1986, passed on a partisan vote with no Democratic legislators’ support. Impacts Stock prices will rise on the tax legislation’s passage; overseas money could flow back into the United States. The new legislation accomplishes for many Trump’s goal of simplifying the annual tax returns filing process. The tax reform will increase the US budget deficit and the national debt, damaging financial stability over the medium to longer term. If the Democrats win the House or Senate in 2018, they will likely try pushing back on the tax reform. The tax reform will allow new oil drilling in Alaska and undermines parts of the ‘Obamacare’ health scheme.

Trennbankensystem – ein Weg zu mehr Finanzstabilität in Deutschland?

2014 ◽  
Vol 15 (1) ◽  
pp. 41-55 ◽  
Author(s):  
Andreas Dombret ◽  
Thilo Liebig ◽  
Ingrid Stein
Keyword(s):  
Significant Role ◽  
Financial Stability ◽  
Banking System ◽  
Real Economy ◽  
The Real ◽  
Considerable Fraction ◽  
The Us ◽  
Proprietary Trading ◽  
Systemically Important Banks ◽  
The Eu

AbstractThis article examines how the introduction of a specialised banking system is likely to impact banks and the real economy in Germany, in particular from a financial stability perspective. This study is motivated by a recently passed law in Germany on a specialised banking system (Trennbankengesetz), current reforms in the US and UK and proposals for the EU. We focus on the consequences of a separation of the savings & loan business and proprietary trading. We conclude that proprietary trading plays a significant role only for large, systemically important banks in Germany. The latter act as universal banks and grant a considerable fraction of all loans that go to domestic enterprises and consumers. Costs for customers, however, are likely to be moderate. In contrast, a specialised banking system may provide the important advantage that insolvent trading units can be separated more easily from the savings & loan business arm and eventually liquidated. In this way, implicit state guarantees may be reduced.

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