International Competitiveness of U.S. Financial Institutions: Hearings Before the Subcommittee on Financial Institutions Supervision, Regulation and Insurance, Task Force on the International Competitiveness of U.S. Financial Institutions of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, One Hundred First Congress, Second Session. March 21 and 22, 1990 |
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ability of U.S. ability to compete activities of U.S. affiliate allow banks Bank Holding Company Banking Committee banking power banks operating banks to compete BARNARD big banks capital markets Chairman LAFALCE CLARKE commercial and investment commercial banks community banks Comptroller cost of capital countries customers DAVID DREIER deposit insurance DREIER Eastern Bloc economic ESTEBAN EDWARD TORRES FDIC financial firms financial markets financial services financial services industry financial system FIRREA foreign banks Glass-Steagall Act global marketplace going international markets internationally investment banking issue Japan Japanese banks KENNEDY limits loans Mandate for Change March 21 national banks national treatment opportunities overseas PATTERSON permissible activities reform regulation and supervision regulatory restructuring risk safety and soundness Second Banking Directive securities activities SEIDMAN small banks subsidiaries supervisory talk task force Thank thrift tion U.S. banking system U.S. financial institutions U.S. firms underwriting United WILLIAM SEIDMAN
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Page 61 - Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, and the United Kingdom. ) The Basle capital agreement is perhaps the most notable international supervisory achievement to date. This agreement, entitled "International Convergence of Capital Measurement and Capital Standards...
Page 94 - Act — including those that limit the activities of bank affiliates — should be abolished. Such restructuring would be accompanied by a strengthening of the supervisory and regulatory restrictions on banks. The prudent supervision of banks would become more important, along with the need to monitor and limit risks posed by any new activities conducted in the bank. \ If all this sounds familiar, it is because Mandate for Change mirrors the thinking that produced 'the Second Banking Directive adopted...
Page 74 - In fact, the dismantling of archaic statutes as part of a complete revision of our financial system has several advantages. One is that this approach allows financial restructuring to be a two-way street. Not only could banks affiliate with most corporate entities, but those corporate entities could own banks as well. Another benefit is that functional supervision eliminates the costly layers of regulation and supervision that exist when companies are subject to the jurisdiction of both the banking...
Page 82 - ... such as futures or options. Japan opened its first financial futures market in October 1985, by listing government bond futures contracts on the Tokyo Stock Exchange. In September of 1988, Japan began to permit the trading of stock index futures on the Tokyo and Osaka Stock Exchanges. Summary- The...
Page 30 - For those of you who have prepared testimony, we will put the entire text of your testimony in the record...
Page 92 - At the same time, regulators seek to - 21 ensure safety and soundness without unnecessarily impeding the free flow of capital. Moreover, the development of truly international capital markets requires increasing coordination in supervisory oversight and in individual countries' regulatory practices . This process already has begun as evidenced by the recent international agreement on capital regulation, to which the United States is a participant. As noted earlier, the EC already has adopted this...
Page 93 - US banks' activities. The study stressed that if banking companies are to maintain the earnings potential fundamental to their continued viability, they must have the opportunity to offer the products and services necessary to compete on even terms with their international competitors.
Page 33 - SeIdman, in recent testimony, noted that "there is little evidence of any bank safetyand-soundness concerns, conflict-of-interest abuse or undue concentrations of resources from the interaction of banking and nonbankIng activities either here, or abroad where much greater Interaction has traditionally been permitted.* Moreover, current laws provide ample authority for the regulators -7to protect the safety and soundness of financial institutions.
Page 49 - UNDER SECRETARY OF THE TREASURY FOR INTERNATIONAL AFFAIRS BEFORE THE THE INTERNATIONAL COMPETITIVENESS OF US FINANCIAL INSTITUTIONS TASK FORCE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS SUPERVISION, REGULATION AND INSURANCE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS HOUSE OF REPRESENTATIVES FEBRUARY 28, 1990 INTRODUCTION It is a pleasure to be here today to discuss the US Government's policy of national treatment. I hope to address your concerns regarding whether a level playing field exists in...
Page 77 - Similarly, Japanese banks have also become predominate in international banking markets, where they control nearly 40 percent of the assets. Much of this growth has been at the expense of US banks, the second largest group, who controlled less than 15 percent of international bank assets at the end of 1988, a sharp decline from the 22 percent market share they held three years earlier, while market...