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Making Banks Safer :, Can Volcker and Vickers Do it?, Julian Chow, Jay Surti

Contributor
Abstract
This paper assesses proposals to redefine the scope of activities of systemically important financial institutions. Alongside reform of prudential regulation and oversight, these have been offered as solutions to the too-important-to-fail problem. It is argued that while the more radical of these proposals such as narrow utility banking do not adequately address key policy objectives, two concrete policy measures - the Volcker Rule in the United States and retail ring-fencing in the United Kingdom - are more promising while still entailing significant implementation challenges. A risk factor common to all the measures is the potential for activities identified as too risky for retail banks to migrate to the unregulated parts of the financial system. Since this could lead to accumulation of systemic risk if left unchecked, it appears unlikely that any structural engineering will lessen the policing burden on prudential authorities and on the banks
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Why Redefine Scope?; II. Narrow Banking Ideas; A. The Utility Banking Proposals; 1. Rescoping of Universal Banking to Utility Banking; Table 1. Utility Banking Proposals; Table 2. Impact Analysis of Utility Banking; B. Narrow Funding Banks (NFBs); III. Full Institutional Separation of Functions: the Volcker Rule; A. Rationale for the Rule; Box 1. Do Trading Activities Increase the Vulnerability of Banks?; Table 3. Results for U.S., European, and Asian LCFIs; B. What Businesses Must Commercial Banks Give Up?
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (59 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781463936990

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