The Future of Banking Regulation in Developed Countries: Lessons from and for Europe

40 Pages Posted: 3 Jan 2006

See all articles by H.A. Benink

H.A. Benink

Tilburg University

George J. Benston

Emory University - Department of Accounting

Abstract

If the bank regulatory structure in developed countries, particularly those in the EU (as well as the US), were not changed, considerable private and social costs could be incurred. We first outline the current EU regulatory framework and describe and analyze recent bank crises and failures. Based on this record and on the (beneficial for consumers) changes in EU banking regulation, on new data on bank capital/asset ratios in ten European countries, and on an analysis of market and technological changes, we conclude that the present regulatory structure is unlikely to achieve banking stability in the future. We then propose and describe a regulatory framework that can deal effectively with this situation and show how it would affect EU banks.

Suggested Citation

Benink, Harald and Benston, George J., The Future of Banking Regulation in Developed Countries: Lessons from and for Europe. Financial Markets, Institutions & Instruments, Vol. 14, No. 5, pp. 289-328, December 2005, Available at SSRN: https://ssrn.com/abstract=869288 or http://dx.doi.org/10.1111/j.0963-8008.2005.00109.x

Harald Benink (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

George J. Benston

Emory University - Department of Accounting ( email )

Goizueta Business School
1300 Clifton Road
Atlanta, GA 30322
United States
404-727-7831 (Phone)
404-727-5238 (Fax)

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