andpolicyproblems國際金融香港大學(xué)wongkafu-在線瀏覽
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【正文】 erations within a country’s border. ?Little regulations: London, Hong Kong, Luxembourg, Bahrain. ?The uniform regulations of US and Germany on all domestic deposits (regardless of their currency denomination) have discouraged its Eurocurrency business. 40 Political considerations ? Cold War between the US and the USSR ?The Soviets feared that Soviet dollars might got confiscated if placed in a US bank. Therefore, placed in European banks Eurobanks. ? Oil Crisis ?Arab members of OPEC accumulated vast wealth as a result of the oil shocks of 19731974 and 19791980. ?Reluctant to place most of their money in American banks for fear of possible confiscation by the US. Therefore, placed in Eurobanks. 41 Eurocurrencies and world inflation ?Deposit is in a broader definition of money. ?Inflation is everywhere a moary phenomenon. ?Because Eurocurrency business is often not subject to much regulation, the supply of eurocurrency deposits and loans is difficult to control. Thus, moary base may have a weaker relationship with inflation because the proliferation of eurocurrency business. That is, money multiplier is less stable. 42 Regulating international banking 43 The problem of bank failure ?A bank’s financial health depends on the confidence of depositors in the value of assets. ?One bank’s problems may easily spread to sounder banks if they are suspected of having lent to the bank that is in trouble. ?Even without banking regulations, wellmanaged banks take precautions against failure, but some banks might not. 44 Prevention of bank failure ?Deposit insurance: against losses up to $100,000 ?Reserve requirements: a portion of a bank’s asset has to be in liquid form easily mobilized to meet sudden deposit outflows. ?Capital requirements and asset restrictions: ?Bank examination: The Fed, the FDIC and the Office of the Comptroller of the Currency ?Lender of lastresort facilities. 45 Regulations ?Regulations of Eurocurrency business requires international cooperation. ?Otherwise, we may be in a prisoners’ dilemma situation. ?Without cooperation, everyone may end up with loose regulations in order to pete for business internationally. 46 International cooperation ?Basle Committee: A response to the 1974 banking crises ?Central bank heads from 11 industrialized countries met at Bank for International Settlements at Basle, Switzerland. ?Aimed to achieve “a better coordination of the surveillance exercised by national authorities over the international banking system….” 47 Basle Concordat ? An agreement reached by the Basle Committee in 1975 (later revised in 1983). ?Sharing of information about banks by parent and host regulators ?Permits the inspections by or on behalf of parent authorities on the territory of the host authority. ?Regulatory agencies should monitor the assets of banks’ foreign subsidiaries as well as their branches. ?Develop better data on the balance sheets of multinational banks. 48 Capital adequacy ?A set of mon standards for assessing bank capital adequacy was agreed by the Basle Committee in January 1988. ?International banks should have capital equal to at least 8 percent of their riskweighted assets plus offbalancesheet mitments. 49 Trade cannot explain for growth of international banking transactions ?Bryant (1987) estimated that between 19641985, ?international trade grew at a pound rate of % per year ?international banking transactions grew at a pound rate of 26% per year. The annual growth rate of international ba
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