Banking and Effective Capital Regulation in Practice: A Leadership Perspective

Senior bank leaders are struggling to implement unified practices due to a lack of attention to modelling, measuring, and managing risk. This book discusses the theories between bank agents and their principals, and offers consensus on activities that bank managers can implement to address bank risk. It also analyses the relevant factors that determine the necessity for banking regulation and the important role of regulation in managing banking crises.

Format: Paperback / softback
Length: 162 pages
Publication date: 30 May 2022
Publisher: Taylor & Francis Ltd

Due to a longstanding neglect of the significance of modeling, measuring, and managing risk, senior bank leaders are facing significant challenges in implementing unified practices within their financial institutions to address the gaps posed by risky management behavior, rogue trading, liquidity crises, prohibited investments in mortgage-backed securities, and default risks associated with loans. This book delves into the theories governing the interactions between bank agents (bank managers) and their principals (shareholders), a topic that has gained heightened importance in the aftermath of the banking crisis and has subsequently shaped the demand for more efficient risk management and ethical managerial practices.

In collaboration with a senior bank leadership team, the author undertook the task of identifying and delineating effective capital regulation practices that have the potential to mitigate losses and risky management behavioral practices. The book provides a consensus on a range of activities that bank managers can implement to effectively address bank risk. It conducts an in-depth analysis of the factors that necessitate banking regulation and underscores the crucial role of regulation in managing banking crises. The authors' examination of the key regulatory aspects in developed countries, such as the United States, offers a valuable conceptual framework for developing an adequate banking regulatory environment in developing countries.

This book constitutes a unique and valuable contribution to the field of banking, catering to a wide audience including undergraduate, master's, PhD students, academics, and researchers. It serves as a valuable resource for those seeking to deepen their understanding of the intricate constructs within the banking industry.

Dimension: 234 x 156 (mm)
ISBN-13: 9780367523626