Ring-Fencing Cross-Border Banks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Ring-Fencing Cross-Border Banks write by Katia D'Hulster. This book was released on 2018. Ring-Fencing Cross-Border Banks available in PDF, EPUB and Kindle. While international policymakers are making good progress on the important work of global resolution and the preparation of recovery and resolution plans, a growing number of supervisors, home as well as hosts, are resorting to territorial approaches. Higher capital ratios, dividend restrictions, restrictions on liquidity flows and even forced subsidiarization are gaining renewed popularity. The objective of these territorial approaches is to protect the interests of the domestic stakeholders of a foreign bank and to limit the effects of cross-border contagion. This type of “ring-fencing” has a negative connotation as it comes at a cost for banks and the efficiency of the overall global financial system. This article addresses the following questions:(1) What makes prudential supervisors more likely to ring-fence?; (2) Do all forms of ring-fencing really deserve this bad reputation?; (3) What are the risks that these measures are addressing and which instruments have been used?; and (4) What are the implications of ring-fencing for the banking group, financial stability in the home and host country, as well as global financial stability?
Bankers Without Borders? Implications of Ring-Fencing for European Cross-Border Banks
Bankers Without Borders? Implications of Ring-Fencing for European Cross-Border Banks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bankers Without Borders? Implications of Ring-Fencing for European Cross-Border Banks write by Ms.Anna Ilyina. This book was released on 2010-11-01. Bankers Without Borders? Implications of Ring-Fencing for European Cross-Border Banks available in PDF, EPUB and Kindle. This paper presents a stylized analysis of the effects of ring-fencing (i.e., different restrictions on cross-border transfers of excess profits and/or capital between a parent bank and its subsidiaries located in different jurisdictions) on cross-border banks. Using a sample of 25 large European banking groups with subsidiaries in Central, Eastern and Southern Europe (CESE), we analyze the impact of a CESE credit shock on the capital buffers needed by the sample banking groups under different forms of ring-fencing. Our simulations show that under stricter forms of ring-fencing, sample banking groups have substantially larger needs for capital buffers at the parent and/or subsidiary level than under less strict (or in the absence of any) ring-fencing.
Ring-Fencing Cross-Border Banks
Ring-Fencing Cross-Border Banks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Ring-Fencing Cross-Border Banks write by Katia D'Hulster. This book was released on 2014. Ring-Fencing Cross-Border Banks available in PDF, EPUB and Kindle. Territorial bias or home bias refers to the degree of geographical separation of the local operations of a cross border banking group from its foreign parent bank or affiliates to protect the local operations from cross-border contagion. The purpose of this paper is to measure and rank territorial bias in prudential banking regulation and supervision in 22 European Union (EU) and non-EU countries with financial systems predominantly owned by foreign banks. First, a scoring system is developed to measure territorial bias on an individual country basis (vertical analysis). Second, the results are compared across two peer groups, EU and non-EU (horizontal analysis). I find that territorial bias is present to a varying degree in the prudential supervision and the regulations of the countries surveyed. On average higher territorial bias is observed in the non-EU group. Generally, there is also less dispersion in the EU, which can be explained by a more unified regulatory framework and the efforts to achieve supervisory convergence. Non-EU countries also use a wider array of instruments; typically higher capital ratios, mandatory conversion from systemic branches to subsidiaries, stricter local governance requirements, and liquidity restrictions. This is the first analysis and quantification of territorial bias in bank supervision and regulation.
Voluntary Support and Ring-fencing in Cross-border Banks
Voluntary Support and Ring-fencing in Cross-border Banks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Voluntary Support and Ring-fencing in Cross-border Banks write by Gyöngyi LÓRÁNTH. This book was released on 2022. Voluntary Support and Ring-fencing in Cross-border Banks available in PDF, EPUB and Kindle.
Creating a Safer Financial System
Creating a Safer Financial System - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Creating a Safer Financial System write by José Vinãls. This book was released on 2013-05-14. Creating a Safer Financial System available in PDF, EPUB and Kindle. The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.
