Effective Supervision and Enforcement

For a comparative analysis of supervisory principles, see BCBS, Core Principles — Cross Sectoral Comparison, BIS, Basel, November 2001.Google Scholar

See BCBS, Internal Audit in Banks and the Supervisor’s Relationship with Auditors, August 2001Google Scholar

also BCBS, Internal Audit in Banks and the Supervisor’s Relationship with Auditors: A Survey, BIS, Basel, August 2002.Google Scholar

Bank of England, Report of the Board of Banking Supervision Inquiry into the Circumstances of the Collapse of Barings, London, July 1995.Google Scholar

BCBS, The Relationship between Banking Supervisors and Banks’ External Auditors, BIS, Bank for International Settlements, Basel, January 2002.Google Scholar

Senator Carl Levin, ‘Senate Subcommittee Report Charges U.S. Financial Institutions with Aiding Enron Deceptions’, Press Release, Washington, DC, 2 January 2003 (http://levin.senate.gov).Google Scholar

See Mark Kessel, ‘Training Auditing Watchdogs to Bark’, Financial Times, 21 December 2001, p. 12.Google Scholar

See J. Carvana, A. Crockett, D. Flint, T. Hans and T. Jones, Enron et al: Market Forces in Disarray, Group of Thirty, Washington, DC, 2002, 54 p.Google Scholar

See, for example, ‘On-site Examination Policy in Fiscal 2001’, Quarterly Bulletin (Tokyo: Bank of Japan, May 2001), pp. 147–51; Bank of Japan, Annual Review 2002 (Tokyo, 2002), pp. 28–38Google Scholar

Japanese Bankers Association, The Banking System in Japan (Tokyo, March 2001), pp. 1–12; and ‘Japan’s Recent Monetary and Structural Policy Initiatives’ in International Monetary Fund, World Economic Outlook (Washington, DC: IMF, May 2001), pp. 19–20.Google Scholar

See, for example, Stuart I. Greenbaum and Anjan V. Thakor, Contemporary Financial Intermediation, (Orlando, Fl: Dryden Press, 1995), p. 66.Google Scholar

Anil K. Kashyap, ‘Sorting out Japan’s financial crisis’, Economic Perspectives, Federal Reserve Bank of Chicago, 2002, 4th quarter p. 42–55.Google Scholar

See ‘Discussants Weigh Impact of Foreign Participation in Financial Systems of Developing Countries’, IMF Survey (Washington, DC: IMF, 21 May 2001), pp. 173–5; and J. S. Crystal, B. G Dages and L. S. Goldberg, ‘Has Foreign Bank Entry Led to Sounder Banks in Latin America?,’ Current Issues in Economics and Finance, Federal Reserve Bank of New York, January 2002.Google Scholar

See C. W. Calomiris and R. E. Litan, ‘Financial Regulation in a Global Marketplace’, Brookings–Wharton Papers on Financial Services, Washington, DC, 2000, pp. 283–339.Google Scholar

Institute of International Bankers, Global Survey 2002 — Regulatory and Market Developments, Banking-Securities-Insurance, New York, September 2002.Google Scholar

Federal Financial Institution Examination Council, Bank Reports — Proposed Collection of Data on Subprime Consumer Lending Programs. Washington, DC, 28 July 2002.Google Scholar

See R. A. Gilbert, A. P. Meyer and M. D. Vaughan, ‘Could a CAMELS Downgrade Model Improve Off-Site Surveillance?,’ Review, Federal Reserve Bank of St. Louis, January/February 2002, pp. 47–63Google Scholar

and BCBS, Supervisory Guidance on Dealing with Weak Banks, BIS, March 2002.Google Scholar

One senior bank supervisor’s rule-of-thumb is ‘any bank which has doubled its loans book in three years will fail during the next three years’; see John Hawkins and Philip Turner, ‘International Financial Reform: Regulatory and Other Issues’, in S. Claessens and K. J. Forbes (eds), International Financial Contagion, (Boston: Kluwer, 2001), pp. 431–60.CrossRefGoogle Scholar

For a survey of such models, see Ranjana Sahajwala and Paul Van den Bergh, Supervisory Risk Assessment and Early Warning Systems, (Basel: BIS, December 2000).Google Scholar

See, for example, J. W. Gunther, M. E. Levonian and R. R. Moore, ‘Can the Stock Market Tell Bank Supervisors Anything They Don’t Already Know?’, Economic and Financial Review Federal Reserve Bank of Dallas, 2001, 2nd quarter, pp. 2–9.Google Scholar

See, for example, J. McAndrews and C. Stefanandis, ‘The Consolidation of European Stock Exchanges’, Current Issues, Federal Reserve Bank of New York, June 2002.Google Scholar

John D. Hawke, Jr, Comptroller of the Currency, ‘Fee Disparity Problem Must be Fixed’, Washington, DC, 9 May 2002.Google Scholar

See Donald E. Powell, chairman of FDIC, Why Regulatory Restructuring? Why Now?, Washington, DC, 16 October 2002.Google Scholar

John D. Hawke, Jr, Comptroller of the Currency, ‘Fee Disparity Problem Must be Fixed’, Washington, DC, 9 May 2002.Google Scholar

See US General Accounting Office, Bank Regulation -Analysis of the Failure of Superior Bank (Thomas J. McCool), Washington, DC, 7 February 2002.Google Scholar

See, for example, Pierluigi Ciocca, ‘Supervision: One or More Institutions’, Economic Bulletin, Bank of Italy, Rome, October 2001, pp. 113–16.Google Scholar

Board of Governors of the Federal Reserve System, Improving Public Disclosure in Banking, Study Group on Disclosure, Washington, DC, March 2000.Google Scholar

See, for example, Patrick Donnelly, ‘What Every Audit Committee Member Should Know’, The RMA Journal, (Philadelphia: The Risk Management Association, September 2001), pp. 48–51.Google Scholar

See, for example, Claudio Borio and Philip Lowe, ‘To Provision or Not to Provision’, BIS Quarterly Review, September 2001, pp. 35–48.Google Scholar

See, for example, Charles W. Calomiris and Joseph R. Mason, ‘Contagion Bank Failures During the Great Depression: The June 1932 Chicago Banking Panic’, American Economic Review, December 1997, pp. 863–8Google Scholar

and Diane S. Docking, Mark Hirschey and Elaine Jones, ‘Information and Contagion Effects of Bank Loan-Loss Announcements’, Journal of Financial Economics, February 1997, pp. 219–39.Google Scholar

See, for example, Andrew Crockett, BIS, Market Discipline and Financial Stability, Banks and Systemic Risk Conference, Bank of England, London, 23–25 May 2001.Google Scholar

See Robert M. Hunt, ‘What’s in the File? The Economics and Law of Consumer Credit Bureaus [sic]’, Business Review, Federal Reserve Bank of Philadelphia, 2nd quarter, 2002, pp. 17–24.Google Scholar

Financial Ombudsman Service, Annual Review 13 June 2002.Google Scholar

See, for example, Swiss Banking Ombudsman, Annual Report 2001, Basel, 2002.Google Scholar