Bank Regulation
A Bank Regulation is a Government Regulation that affects a bank.
- Context:
- It can be policed by a Bank Regulator.
- See: Control Fraud, Economy, Too Big to Fail, Investment Banking, Commercial Bank.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Bank_regulation Retrieved:2014-5-12.
- Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things.
Given the interconnectedness of the banking industry and the reliance that the national (and global) economy hold on banks, it is important for regulatory agencies to maintain control over the standardized practices of these institutions. Supporters of such regulation often hinge their arguments on the "too big to fail" notion. This holds that many financial institutions (particularly investment banks with a commercial arm) hold too much control over the economy to fail without enormous consequences. This is the premise for government bailouts, in which government financial assistance is provided to banks or other financial institutions who appear to be on the brink of collapse. The belief is that without this aid, the crippled banks would not only become bankrupt, but would create rippling effects throughout the economy leading to systemic failure.
- Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things.
2005
- (Black, 2005) ⇒ William K. Black. (2005). “The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S\&L Industry.” University of Texas Press. ISBN:9780292754188
- QUOTE: … the strategies that corrupt CEOs and CFOs - in collusion with those who have regulatory oversight of their industries - use to defraud companies for their personal gain. Recounting the investigations he conducted as Director of Litigation for the Federal Home Loan Bank Board, Black fully reveals how Charles Keating and hundreds of other S&L owners took advantage of a weak regulatory environment to perpetrate accounting fraud on a massive scale.