Lessons from the History of Bank Examination and Supervision in the United States, 1863-2008

Financial Market Regulation in the Wake of Financial Crises: The Historical Experience Conference, p. 15, 2009

30 Pages Posted: 8 Jul 2012

See all articles by Eugene N. White

Eugene N. White

Rutgers, The State University of New Jersey

Date Written: April 16, 2009

Abstract

The history of American banking provides five distinct regulatory/supervisory regimes that cast light on the difficulties of constructing a regime that will guarantee the efficiency as well as the safety and soundness of the system. A basic taxonomy of regulation and supervision is provided to identify the key elements and rationale of each regime. Mark-to-market and prompt closure of insolvent institutions produced the lowest cost to depositors, shareholders and taxpayers, whereas discretion and forbearance created the banking cataclysms of the 1980s and 2000s.

JEL Classification: G28, N21, N22

Suggested Citation

White, Eugene N., Lessons from the History of Bank Examination and Supervision in the United States, 1863-2008 (April 16, 2009). Financial Market Regulation in the Wake of Financial Crises: The Historical Experience Conference, p. 15, 2009, Available at SSRN: https://ssrn.com/abstract=2101709

Eugene N. White (Contact Author)

Rutgers, The State University of New Jersey ( email )

311 North 5th Street
New Brunswick, NJ 08854
United States

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