The United States: The First Formalization of Banking Supervision

This chapter examines the formalization of banking supervision in the United States (US), focusing on the federal level. During the “free banking era” from the late 1830s to 1864, several state governments created banking supervisory systems at the state level. Triggered by the fiscal needs of the Civil War, as well as the demand for a national currency, the US became the first country to introduce uniform nationwide banking supervision with the creation of the Office of the Comptroller of the Currency (OCC) and the national banking system. The main purpose of the OCC was to ensure that the national banks did not violate the regulations related to the new currency, the US dollar. From a historical perspective, the rapid social and economic development of the US from the 1850s provided the background for this institutional change. Although the US case demonstrates that financial crises have not always driven the formalization of banking supervision, the crises of 1907 and the Great Depression served to further strengthen the formalization of banking supervision by prompting the introduction of multi-agency banking supervision in the US.

Jackson, the Bank War, and the Legacy of the Second Bank of the United States

President Jackson vetoed the bill to recharter the Second Bank of the United States on July 10, 1832. I describe events leading to the veto and through the bank's dissolution in 1836 using private correspondence and official government documents. These sources reveal a political process through which charges against the bank took hold, accomplices and backup plans were lined up, and the bank was ultimately destroyed with the assistance of chartered banks in New York City. Although the aggressive means by which the bank was dismantled led to a system-wide financial failure and recession in the short term, the long-run outcome was likely a wider diffusion of banking services and a more efficient allocation of capital. The Federal Reserve benefited from applying a more rigorous regulatory structure onto the grid that the populists, free bankers, and National Banking System established.

Money and its circulation in Russia and abroad: trends and modernity

Money is studied through the prism of new approaches to the interpretation of its essence and taking into account the retrospective data on the nature and causes of money. The dynamics and structure of cash in circulation are presented, and the features of its circulation in the national financial system are revealed. The article examines the issues of money classification in the context of changing the strategy of their use in money circulation. The article analyzes the structure of banknotes and coins in monetary circulation in Russia. A comparative assessment of the dynamics of cash in the Russian circulation system for the period from 2020 to 2021 is given. The article describes the foreign practice of implementing the refundable cash benefit mechanism in the system of regulation and control of the cash supply in circulation as a tool for improving the efficiency of innovation activities. The priorities of cash distribution in the leading countries of the world are identified, on the basis of which the article concludes that the monetary policy in Japan, Switzerland and the United States is prioritized in the system of solving problems to improve the quality of money distribution in the global financial space. The article examines the positive experience of Brazil in adapting the money circulation system after the COVID-19 pandemic to the new realities and prospects for the development of the global money market. The policy of concessional lending and the provision of financial assistance at the expense of the resources of the national banking system through the implementation of government programs reflects the result of the transformation of the money supply into a system of social transfers.

Role of Negative Interest Rates for Energy Assets Pricing in Financial Markets

The world economy strives for globalization, and most energy assets are connected with each other through correspondent banks and other mutual operations. The relevance of the topic of the thesis is due to the fact that in September 2019 a number of proposals were made to introduce the practice of negative interest rates in the national banking system due to the fact that Russian energy assets are not profitable to place in foreign currency..

The Impact Of Covid-19 On Islamic Banking In Indonesia During The Pandemic Era

The impact of COVID-19 on Islamic banking can be analysed into three possible risks, such as financing risks, impairment of assets, and tightening the profit-sharing system. Compared to conventional banks, Islamic banking is more flexible in meeting the economic crisis caused by the COVID-19 pandemic. Basically, the national banking system had predicted trouble due to the COVID-19 epidemic. On the other hand, Islamic banks are at an advantage with the theory of profit-sharing, thus increasing its effectiveness in dealing with crises. Islamic banks’ dominance throughout these challenging times is undoubtedly an excellent opportunity to strengthen their market share. Besides, Islamic banks can face risks, such as providing loans, deteriorating asset quality, and tightening profit sharing. Therefore, Islamic banks must understand these risks to ensure their plans during the COVID-19 pandemic. Admittedly, performing restricted expansion into the digital share is a challenging decision that should be practised by Islamic banks. In view of the recent pandemic, this study aimed to analyse the three risks faced by Islamic banking in Indonesia.

Arah Kebijakan Pengawasan terhadap Perbankan Syariah dalam Sistem Perbankan Nasional di Indonesia

This research aims to explain the direction of policy regarding supervision of Islamic banking in the banking system in Indonesia. The method used in this research is normative legal research using the statutory approach. The results of this research explain that the policy regarding supervision of Islamic banking in the national banking system in Indonesia is headed toward an independent direction. In Law Number 7 of 1992 and Law Number 10 of 1998, it is stated that supervision of Islamic banking is done by Bank Indonesia as the central bank. Based on Law Number 21 of 2008, supervision of Islamic banking is strengthened by not only being supervised by Bank Indonesia, but also by the National Sharia Council of the Majelis Ulama Indonesia by placing Sharia Supervisory Councils in each Islamic bank. After the ratification of Law Number 21 of 2011, supervision of Islamic banking moved from Bank Indonesia to an independent institution called the Financial Services Authority.

РЕГУЛЮВАННЯ ДІЯЛЬНОСТІ БАНКІВСЬКОГО СЕКТОРА У КОНТЕКСТІ ЗАБЕЗПЕЧЕННЯ ЙОГО ЕКОНОМІЧНОЇ БЕЗПЕКИ

The article substantiates the need to regulate the banking sector to ensure economic security of its operation. The main tasks of state regulation and supervision of the banking sector have been identified. The types of existing models of the institutional structure of the system of banking regulation and distribution of powers between prudential supervisors are revealed. Requirements for the development of a model of regulatory policy in the banking sector of Ukraine have been formed. The necessity of creating early crisis prevention systems (macroeconomic, based on warning indicators), monitoring of systemic financial institutions, application of macroprudential analysis with regular publication of a strategic document - the Financial Stability Report. The foreign experience of macroprudential regulation and supervision with the help of established specialized divisions of central banks on financial stability and security is reflected. The creation of a separate unit of financial stability and security in Ukraine was initiated, reporting directly to the Chairman of the NBU. The scheme of correlation of subjects of management and tools of maintenance of economic safety of national banking system with separation of subjects of management of economic safety of banking sector, tools of maintenance of economic safety of banking sector at the international and national levels of banking supervision is developed. The implementation of the principles of the Basel Accords in the activity of the banking system of Ukraine is determined as a determining factor in strengthening its financial stability and economic security. The issue of trust in the banking system is one of the main criteria for success, efficiency and security of the banking sector of the economy of each state. The need for monitoring and management of systemic risks has been proved.

ISRAELI BANKING SYSTEM: CURRENT STATE AND FUTURE DEVELOPMENT PERSPECTIVES

Being the foundation of the financial system of the state, the banking sector is key in a number of development areas. Since money is an extremely sensitive instrument, banks are generally fairly conservative institutions. However, the acceleration of the pace of scientific and technological progress, the expansion of its scope more and more affect the financial sector of the economy as a whole and banks as its central component. The article shows that in the first two decades of the XXI century Israel’s banking system has undergone a significant transformation. The main objective of the reforms was to reduce the level of concentration in this sector. It was also essential to improve the transparency of the functioning of the country’s banking system. In general, it should be noted that, despite the rather strong resistance from the leadership of the largest banks in Israel, by the beginning of the third decade of this century, the country’s banking system came up in much better “shape” than it was before the reforms began. Meanwhile, nevertheless, the level of concentration in it is still quite high. It seems that the processes of digital transformation, which, albeit slowly, but occur in the country’s banking system, will make it even more efficient and adequate to the requirements of the modern economy. Digital platforms are democratic and transparent by their very nature. Their introduction by Israeli banks will significantly increase the transparency and decentralization of the national banking system. At the time of this writing, digitalization processes in this area are only at the very beginning, so at this stage it is difficult to say how successful their results will be, despite, of course, the high transformational potential of digital technologies, which was mentioned earlier.