【正文】 McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 46 The Reasons Behind Regulations ? Concern for the safety of the public’s funds. ? To promote public confidence in the system. ? To ensure equal opportunities and fairness in the public’s access to financial services. ? To prevent excessive money creation, and hence excessive inflation. ? To aid “disadvantaged” economic sectors. ? To ensure that important financial services are provided reliably and at a reasonable cost. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 47 Do Regulations Benefit or Harm Financial Institutions? ? Regulations subsidize the growth of financial institutions and protect them from petition. ? Regulations tend to increase public confidence. ? Regulations spawn innovative escapes (regulatory dialectics) through loopholes in the regulations. ? Regulations can benefit financial institutions. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 48 Do Regulations Benefit or Harm Financial Institutions? ? Regulatory dialectics are not the most productive form of innovation. ? The time and energy spent on regulatory pliance activities are costly. ? Regulations can harm financial institutions. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 49 The Regulation of Commercial Banks ? Due to their importance in the financial system, mercial banks are typically the most regulated of all financial institutions. ? Responsibility for regulating . banks today is divided among three federal banking agencies – the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation – and the state banking missions of the 50 states. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 50 The Federal Reserve System ? Supervises and regularly examines all member banks operating in the . ? Imposes reserve requirements on deposits held by all depository institutions and grants temporary loans of reserves. ? Must approve all applications of member banks to merge, establish branches, or exercise trust powers. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 51 The Federal Reserve System ? Supervises international banking corporations anized by . banks and foreign banks operating in the . ? Regulates and examines all bank and financial holding panies in the . ? Conducts moary policy to control the growth of money and credit in the financial system. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 52 The Comptroller of the Currency ? Issues charters for new national banks. ? Regulates and regularly examines all national banks. ? Must approve all national banks’ applications for new branch offices, trust powers, mergers, and consolidations. ? Declares insolvent national banks closed. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 53 Federal Deposit Insurance Corporation ? Insures deposits of savings institutions (thrifts) and banks conforming to its regulations up to $100,000, and acts as receiver for all national banks declared insolvent and for state banks if requested by a state banking mission. ? Must approve applications by insured banks to set up branches, merge or exercise trust powers ? Requires all insured banks to submit reports on their financial condition. . ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 54 State Banking Commissions ? Issue charters for new state banks. ? Supervise and regularly examine all statechartered banks. ? Approve applications by state banks to form a holding pany, acquire subsidiaries, or establish branches. ? Declare insolvent statechartered banks closed and appoint a receiver to liquidate or otherwise dispose of the assets of failed state banks. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 55 Regulations Controlling The Geographic Expansion of Banks ? The new geographic markets that banks can enter have been tightly controlled. ? National Bank Act (18634) ? Banking Act (1933) ? Bank Holding Company Act (1956, amended 1970) ? Bank Merger Act (1960, amended 1966) ? Financial Institutions Reform, Recovery, and Enforcement Act (1989) ? RiegleNeal Interstate Banking and Branching Efficiency Act (1994) ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 56 Regulation of the Services Banks Can Offer ? Regulations controlling the services banks can offer have also been tight out of concern for bank safety and a desire to protect certain nonbank financial institutions from tough bank petition. ? GlassSteagall Act (Banking Act) (1933) ? Financial Services Modernization (GrammLeachBliley) Act (1999) ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 57 The Rise of Disclosure Laws in Banking ? One rapidly expanding area of . banking regulation today concerns disclosure rules. ? Truth in Lending Act (1968) ? Home Mortgage Disclosure Act (1975) ? Community Reinvestment Act (1977) ? Truth in Savings Act (1991) ? FDIC Improvement Act (1991) ? Financial Services Modernization (GrammLeachBliley) Act (1999) ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 58 The Growing Importance of Capital Regulation in Banking ? Another major trend reshaping the regulation of banks and other financial institutions today centers upon their capital. ? Basle Agreement (1988) ? FDIC Improvement Act (1991) ? 2020 by The McGra