Rethinking Bank Regulation

James R. Barth, Gerard Caprio Jr., and Ross Levine (2006), Rethinking Bank Regulation; Till Angels Govern_ (Cambridge: Cambridge University Press: 0521855764).

Rick Mishkin says:

Rethinking Bank Regulation is an important book. It provides striking evidence (using a unique data set created at the World Bank) that strengthening the discretionary powers of prudential supervisors in countries with weak institutional environments leads to a lower level of bank development, greater corruption in lending, and banks that are less safe and sound. Following the Basel II recommendation of strengthening supervisory powers, therefore, may do more harm than good in developing countries, unless it is accompanied by substantial progress in institutional development. This book provides an important warning to policy makers that what works for advanced countries may not work for developing countries.

Comments

[James S. W.]

Plan to be the first to review this book on Amazon, Prof?

[James S. W.]

All I know about economics and Auburn U. is that Auburn is the home of the Ludwig von Mises Institute, a libertarian thinktank, so I'm guessing that this book argues along those lines.

[DuckedApe]

"strengthening supervisory powers" need not be the same (have the same consequences) as "strengthening the discretionary powers of prudential supervisors". It does not follow, neither is it true, that stronger supervisory powers must be greater discretionary powers which must in turn favor corruption and poor judgement on the part of supervisors. Basel 2 provides a framework for improving judgement, not carte blanche to cheat.

[Cranky Observer]

Someone in the United States still regulates banks? As an individual consumer I don't see any evidence of that.

Cranky

[anne]

This is all Austrianism, and deceptively beyond understanding as all Austrianism is. I am reminded of the double talking comedian who sounds so close to reasonable while making not the slightest sense :)

[mike]

List of central banks worldwide:

http://www.openoffshorebankaccountsfornonresidents.com/InformationListcentralBanksWorldwide.htm

Also on the site ATM debit cards, Swiss and USA Banking accounts.