Is Government Regulation of Banks Necessary?

Banks have been involved with and regulated by governments for hundreds of years. This paper delineates 9 reasons that could justify continued regulation, particularly in the US. This article concludes that deposit insurance, which allows banks to hold insufficient capital, is the only public-policy...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Journal of financial services research 2000-12, Vol.18 (2), p.185-202
1. Verfasser: Benston, George
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:Banks have been involved with and regulated by governments for hundreds of years. This paper delineates 9 reasons that could justify continued regulation, particularly in the US. This article concludes that deposit insurance, which allows banks to hold insufficient capital, is the only public-policy-justifiable rationale for regulation. This concern can be managed with capital requirements; otherwise, banks should only be regulated as are other corporations.
ISSN:0920-8550
1573-0735
DOI:10.1023/A:1026590704616