Universal Banking in the United States: What Could We Gain? What Could We Lose? - Hardcover

Saunders, Anthony; Walter, Ingo

Hardcover

ISBN 10: 0195080696 ISBN 13: 9780195080698

Publisher: Oxford University Press, 1994

Synopsis

In 1933 and 1956, the United States sharply limited the kinds of securities activities, commercial activities, and insurance activities banks could engage in. The regulations imposed on banks back then remain in place despite profound changes in the economic environment, in the structure of the national and international financial markets, and in technology. In this span of time many industries, especially those confronting global competition, have transformed themselves dramatically in their efforts to survive and prosper. Not so in the American financial services sector, banks have largely remained stuck in an antiquated regulatory structure which has placed the burden of responding to the needs of market-driven structural change on the shoulders of the regulators and the courts in a constant search for loopholes in the law.
The purpose of this book is to evaluate the case for and against eliminating the barriers that have so long existed between banking and other types of financial services in the United States. Universal Banking in the United States studies the consequences of bank regulation in the U.S. as it relates to competition in international financial markets. Anthony Saunders and Ingo Walter examine universal banking systems in other countries, especially Germany, Switzerland, and the U.K., and how they work. They then apply the lessons to U.S. banking, paying particular attention to the benchmarks of stability, equity, efficiency, and competitiveness against which the performance of national financial systems should be measured. In the end, the authors propose the outlines of a level playing field on which any number of forms of organization can grow in the financial services sector, in which universal banking is one of the permitted structures, and where regulation is linked to function.

About this title

About the Author:

Anthony Saunders and Ingo Walter are both at the Stern School of Business, New York University.

Review:

"Universal Banking in the United States is an excellent book that provides a careful, in-depth analysis of the case for and against a shift to universal banking in the US...Quite readable and extremely interesting. It is of interest to a wide audience, including bankers, regulators, and lobbyists, and should be read by every US legislator."--Bankers Magazine

"That powers will be expanded for U.S. banks is a foregone conclusion, the only question is when and how. In this book, Saunders and Walter provide bankers, regulators, and the public with a roadmap of both the consequences of permitting banks to offer different types of new activities and the experiences of foreign countries with alternative forms of universal banking."--George G. Kaufman, Loyola University

"Saunders and Walter explain why and how the U.S. can benefit from adopting a regulatory structure that simultaneously relaxes restraints on the activities of private institutions and tightens restraints on these institutions' government supervisors. The key to safely unfettering government-guaranteed private players is to ensure that sensible capital requirements are formulated and enforced."--Edward J. Kane, Boston College

"Universal Banking in the United States: What could we gain? What could we lose? by Anthony Saunders and Ingo Walter provides a very good exposition of the market, regulatory, and policy dimensions associated with developing a universal banking system in the United States. The book is highly recommended to those who would like to get a better understanding of the pros and cons of universal banking."--The Financier: ACMT

"The authors provide a wide-ranging, detailed survey of institutional differences in regulation and business practices of banking systems in various countries... this is a commendable book full of useful information, which provides a wealth of careful and accessible analysis for public policy makers, scholars, and graduate students interested in bank regulatory reform."--Journal of Economic Literature

About this edition

• Publisher: Oxford University Press
• Publication date: 1994
• ISBN 10: 0195080696
• ISBN 13: 9780195080698
• Binding: Hardcover
• Edition number: 1
• Number of pages: 288