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The Nature of Clearing Bank Regulation

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Part of the Palgrave Studies in Economic History book series (PEHS)

Abstract

This chapter describes and explores the nature of clearing bank regulation in the period from 1946 until the early 1970s. For analytical purposes, it classifies regulation as taking the form of codified regulation, normally in the form of primary legislation; extra-legal regulation (that is, non-statutory regulation, or “soft law”); and self-regulation. It begins by briefly summarizing the legal framework within which the clearing banks operated. It then explores the non-statutory ways in which the banks were regulated, including ratio requirements, deposits schemes, quantitative and qualitative guidance on lending, the provision of information and moral suasion. It also considers the constraints over the activities of the clearing banks which regulated them indirectly. It closes by considering the self-regulatory aspects of clearing bank regulation.

Keywords

Cash ratio Liquidity ratio Special Deposits Scheme Moral suasion Codified regulation Extra-legal regulation Self-regulation 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.University of ReadingReadingUK

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