Bank supervision

Author: Shi Lei et al. Translated
Publisher:
Publishing Date: 2002-06-01
Features: Banking Regulation is a highly influential work in the world. This book uses the tools of information economics and contract theory, particularly the ideas of corporate theory and capital structure theory, to analyze the issues of prudent banking regulation. The authors first treat banks as general enterprises, derive the characteristics of governance structures from the perspective of capital structure, and propose the "agency theory" to answer the question of "Why regulate banks?" Based on this idea, the authors delve deeply into the logic of contract theory to explore the optimal investor incentive schemes, performance evaluation methods for bank managers, and how to choose a regulatory framework. They also examine the political economy of banking regulation and evaluate the Basel Accord and regulatory systems in other countries. The book also discusses the regulatory issues of other non-bank financial institutions (such as securities companies, insurance companies, funds, etc.). This book is highly valuable for scholars, graduate students, senior undergraduate students, bankers, and regulatory authorities who are interested in financial regulation, microbank theory, and corporate theory. It can be read as a monograph or used as a textbook.