Volume Title: Prudential Supervision: What Works and What Doesn't. Volume Author/Editor: Frederic S. Mishkin, editor

Transcription

1 This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Prudential Supervision: What Works and What Doesn't Volume Author/Editor: Frederic S. Mishkin, editor Volume Publisher: University of Chicago Press Volume ISBN: Volume URL: Conference Date: January 13-15, 2000 Publication Date: January 2001 Chapter Title: Front matter, acknowledgments, table of contents Chapter Author: Frederic S. Mishkin Chapter URL: Chapter pages in book: (p )

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3 Prudential Supervision What Works and What Doesn t

4 A National Bureau of Economic Research Conference Report

5 Prudential Supervision What Works and What Doesn t Edited by Frederic S. Mishkin The University of Chicago Press Chicago and London

6 FREDERIC S. MISHKIN is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University, and a research associate of the National Bureau of Economic Research. He is a former director of research and executive vice president at the Federal Reserve Bank of New York. The University of Chicago Press, Chicago The University of Chicago Press, Ltd., London 2001 by the National Bureau of Economic Research All rights reserved. Published 2001 Printed in the United States of America ISBN: (cloth) Copyright is not claimed for chapter 3 by Laurence H. Meyer or chapter 6 by Mark Carey. Library of Congress Cataloging-in-Publication Data Prudential supervision : what works and what doesn t / edited by Frederic S. Mishkin. p. cm. (A National Bureau of Economic Research conference report) Papers presented at a conference held at Cheeca Lodge, Islamorada, FL, Jan , Includes bibliographical references and index. ISBN (alk. paper) 1. Bank management Congresses. 2. Risk management Congresses. 3. Banks and banking Government policy Congresses I. Mishkin, Frederic S. II. Series. HG1615.P dc o The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences Permanence of Paper for Printed Library Materials, ANSI Z

7 National Bureau of Economic Research Officers Carl F. Christ, chairman Kathleen B. Cooper, vice-chairman Martin Feldstein, president and chief executive officer Robert Mednick, treasurer Susan Colligan, corporate secretary Kelly Horak, controller and assistant corporate secretary Gerardine Johnson, assistant corporate secretary Directors at Large Peter C. Aldrich Martin Feldstein Rudolph A. Oswald Elizabeth E. Bailey Stephen Friedman Robert T. Parry John H. Biggs George Hatsopoulos Peter G. Peterson Andrew Brimmer Karen N. Horn Richard N. Rosett Carl F. Christ Judy C. Lewent Kathleen P. Utgoff Don R. Conlan John Lipsky Marina v.n. Whitman Kathleen B. Cooper Michael H. Moskow Martin B. Zimmerman George C. Eads Alicia H. Munnell Directors by University Appointment George Akerlof, California, Berkeley Jagdish Bhagwati, Columbia William C. Brainard, Yale Glen G. Cain, Wisconsin Franklin Fisher, Massachusetts Institute of Technology Saul H. Hymans, Michigan Marjorie B. McElroy, Duke Joel Mokyr, Northwestern Andrew Postlewaite, Pennsylvania Nathan Rosenberg, Stanford Michael Rothschild, Princeton Craig Swan, Minnesota David B. Yoffie, Harvard Arnold Zellner, Chicago Directors by Appointment of Other Organizations Mark Drabenstott, American Agricultural Richard D. Rippe, National Association for Economics Association Business Economics Gail D. Fosler, The Conference Board John J. Siegfried, American Economic A. Ronald Gallant, American Statistical Association Association David A. Smith, American Federation of Robert S. Hamada, American Finance Labor and Congress of Industrial Association Organizations Robert Mednick, American Institute of Josh S. Weston, Committee for Economic Certified Public Accountants Development Angelo Melino, Canadian Economics Gavin Wright, Economic History Association Association Directors Emeriti Moses Abramovitz Franklin A. Lindsay Eli Shapiro Thomas D. Flynn Paul W. McCracken Lawrence R. Klein Bert Seidman Since this volume is a record of conference proceedings, it has been exempted from the rules governing critical review of manuscripts by the Board of Directors of the National Bureau (resolution adopted 8 June 1948, as revised 21 November 1949 and 20 April 1968).

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9 Contents Acknowledgments ix 1. Prudential Supervision: Why Is It Important and What Are the Issues? 1 Frederic S. Mishkin 2. Banking Systems around the Globe: Do Regulation and Ownership Affect Performance and Stability? 31 James R. Barth, Gerard Caprio Jr., and Ross Levine Comment: Mark Gertler 3. Supervising Large Complex Banking Organizations: Adapting to Change 97 Laurence H. Meyer 4. Market Discipline in the Governance of U.S. Bank Holding Companies: Monitoring versus Influencing 107 Robert R. Bliss and Mark J. Flannery Comment: Raghuram G. Rajan vii

10 viii Contents 5. Can Emerging Market Bank Regulators Establish Credible Discipline? The Case of Argentina, Charles W. Calomiris and Andrew Powell Comment: Douglas W. Diamond 6. Dimensions of Credit Risk and Their Relationship to Economic Capital Requirements 197 Mark Carey Comment: Patricia Jackson 7. Obstacles to Optimal Policy: The Interplay of Politics and Economics in Shaping Bank Supervision and Regulation Reforms 233 Randall S. Kroszner and Philip E. Strahan Comment: Jeremy C. Stein 8. Synergies between Bank Supervision and Monetary Policy: Implications for the Design of Bank Regulatory Structure 273 Joe Peek, Eric S. Rosengren, and Geoffrey M. B. Tootell Comment: Ben S. Bernanke 9. Did U.S. Bank Supervisors Get Tougher during the Credit Crunch? Did They Get Easier during the Banking Boom? Did It Matter to Bank Lending? 300 Allen N. Berger, Margaret K. Kyle, and Joseph M. Scalise Comment: Stephen G. Cecchetti Contributors 357 Author Index 359 Subject Index 363

11 Acknowledgments This volume contains papers and comments presented at a conference held at Cheeca Lodge, Islamorada, Florida, January I am grateful to the Ford Foundation, the Andrew W. Mellon Foundation, and the Center for International Political Economy for financial support. I thank Martin Feldstein, president of the NBER, and Greg Mankiw, program director for monetary economics at the NBER, for their advice over the course of this project. I also thank Marc Saidenberg of the Federal Reserve Bank of New York s Research and Markets Analysis Group for preparing the summaries of the general discussions, Kirsten Foss Davis and Brett Maranjian of the NBER Conference Department for efficient support of the conference, and Helena Fitz-Patrick of the NBER Publications Department for excellent assistance with the publication process. ix

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