tailieunhanh - Lecture Legal and regulatory aspects of banking supervision – Chapter 9

The following will be discussed in this chapter: Institutional approaches to banking regulation, policy goals of regulations, safety and soundness of financial institutions, mitigation of systematic risk, fairness and efficiency of markets, protection of customers and investors, the four approaches to financial supervision. | MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: NINE Summary of previous session BASEL I Background Main Framework BASEL II Background Objective The accord in operation The three pillars Basel and Regulators BASEL II and the global financial crisis. 2 Agenda of this session Institutional Approaches to Banking Regulation Introduction Background Policy Goals of Regulations Safety and Soundness of Financial Institutions Mitigation of systematic risk Fairness and efficiency of markets Protection of Customers and investors The four Approaches to Financial supervision The institutional Approach Case Example-- CHINA 3 Institutional Approaches to Banking Regulation 4 Introduction As financial market turmoil spreads across the globe, regulators, supervisors, policymakers, and the public at large have been questioning the effectiveness of financial supervision and whether changes to existing supervisory models are needed. Such a reassessment process is not a | MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: NINE Summary of previous session BASEL I Background Main Framework BASEL II Background Objective The accord in operation The three pillars Basel and Regulators BASEL II and the global financial crisis. 2 Agenda of this session Institutional Approaches to Banking Regulation Introduction Background Policy Goals of Regulations Safety and Soundness of Financial Institutions Mitigation of systematic risk Fairness and efficiency of markets Protection of Customers and investors The four Approaches to Financial supervision The institutional Approach Case Example-- CHINA 3 Institutional Approaches to Banking Regulation 4 Introduction As financial market turmoil spreads across the globe, regulators, supervisors, policymakers, and the public at large have been questioning the effectiveness of financial supervision and whether changes to existing supervisory models are needed. Such a reassessment process is not a new phenomenon. History has shown that financial market disruptions have often been followed by regulatory reforms. 5 Introduction (Contd.) Some of these reforms were incremental, with targeted changes made to existing oversight regimes. Others, however, involved wholesale adoption of very different regulatory approaches. All reforms shared a common goal: to regulate and supervise the financial markets and institutions in an optimal manner. 6 Introduction (Contd.) Even in the absence of a financial crisis or market failure, general concerns over the costs and burdens of regulation, and structural inefficiencies and their potential impact on competition, have similarly called into question the advantages and disadvantages of various financial supervisory models. 7 Introduction (Contd.) The Group of Thirty published a Report on the extensive global focus on the benefits and challenges of various supervisory approaches in order to contribute to the international dialogue on this very .