Global Financial Deregulation

GLOBAL FINANCIAL DEREGULATION Deregulation, globalization, and financial innovation are transforming financial markets and banking systems around the world. Global Financial Deregulation provides an indepth description of the banking systems of seven industrialized countries, the trends and developments affecting them, and the implications for the future of commercial banking. The first part examines the structure and function of the financial markets and banking systems of the US, Canada, the UK, Japan, Switzerland, Germany, and France. The regulatory environment, international involvement, accounting, and tax treatment of the banking industry is described, as well as the effects of securitization, increased competition, deregulation, and globalization. Swary and Topf analyse the impact of these developments on bank performance, focusing on indicators such as net interest spread, non-interest income, doubtful loans, and capital adequacy. The second part analyses the major trends that are reshaping financial markets, and their implications for commercial banking. Against the background of securitization and financial innovation, the convergence of capital adequacy requirements, and the single European market, the critical issues facing banking are examined: deregulation and increased competition restructuring of the banking industry bank expansion into securities markets the future of international banking the outlook for commercial banks

Preface vii Overview 1 Part I Country Survey 11 2 Switzerland 11 3 The Federal Republic of Germany 51 4 France 98 5 The United Kingdom 139 6 Japan 180 7 Canada 229 8 The United States 265 Part II Comparative Analysis and Developments 339 9 Securitization and Financial Innovation 339 10 Non-banking Activities of Banking Organizations 363 11The International Convergence of Capital Adequacy Requirements 397 12 The 1992 Single European Market in Financial Services 430 13 Trends and Developments 456 14 Conclusion 487 Further Reading 490 Index 496