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 |
Other editions - View all
Common terms and phrases
ability of U.S. activities of U.S. affiliate Bank Holding Company banking power banks operating banks to compete BARNARD big banks capital markets Chairman LAFALCE CLARKE commercial and investment commercial banks community banks Comptroller CONG CONGRE BRARY CONGRES THE LIBRARY CONGRESS THE LIBRARY cost of capital countries deposit insurance DREIER Eastern Bloc economic European FDIC financial firms financial markets financial system FIRREA foreign banks geographic Glass-Steagall Act global marketplace going GRESS international markets investment banking Japan Japanese banks KENNEDY laws LIBR LIBRA LIBRARY OF CONGRES LIBRARY OF CONGRESS limits loans Mandate for Change MARCH 21 national banks opportunities overseas PATTERSON percent permissible activities RARY reform regulation and supervision regulatory RESS restructuring risk safety and soundness Second Banking Directive securities activities SEIDMAN small banks subsidiaries task force Thank THEO thrift tion U.S. banking system U.S. financial institutions U.S. firms underwriting United WILLIAM SEIDMAN
Popular passages
Page 62 - It is a major responsibility that can best be met by establishing audit sites at the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.
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 - The tools needed for insulating banks and establishing the "supervisory wall" are only a logical extension of safeguards that exist today to protect banks from inside abuse and conflicts of interests.
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 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 72 - Chairman, banking is clearly experiencing and will continue to experience rapid and critical changes, yet our current financial system was shaped in response to events which occurred over 50 years ago. This system is outdated, inequitable and inefficient. As a result, we believe that system now hampers the ability of our financial institutions to effectively compete in the marketplace.
Page 60 - It is my hope that recent changes in global financial markets will provide a strong impetus for the relaxation of restrictions on the permissible activities of US banks. TOWARDS INTERNATIONAL SUPERVISORY STANDARDS Providing better opportunities for US banks to compete internationally will, no doubt, place greater burdens on the supervisors of US banks. We must become more familiar with foreign markets, the activities of US banks in these markets, and the risks inherent in these activities. But these...
Page 61 - We established a -13London office in 1972. Staff assigned to our London office routinely examine the London and major European operations of national banks. We also conduct on-site evaluations of the operations of national banks outside of Europe. Through our supervision, we seek to ensure that a bank has instituted proper controls and safeguards to manage its international exposure. We also conduct examinations that are targeted to particular activities, such as foreign exchange trading. Since January...
Page 4 - ... banking system and the deposit insurance fund. Much needs to be done. Today, I want to focus on two areas where action is urgently needed and then to discuss briefly my views on international trends in supervision. The two areas where action is urgently needed are costly over-restrictive US laws, such as the Glass-Steagall Act, and geographic diversification. I am concerned that US laws, like the Glass-Steagall Act, are impairing the efficiency of capital markets and thereby raising the cost...
Page 83 - ... to the GAO, these banks receive "super-national treatment" because domestic banks in Japan, as in the United States, are currently restricted from engaging in similar activities. Entry guidelines for securities affiliates of US banks are the same that apply to European banks: the Japanese unit must be a branch of an off-shore subsidiary that is not more than 50 percent owned by the parent foreign bank. The Japanese government's decision to permit US banks additional securities powers apparently...