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Emerging Trends in Smart Banking

Book Description

The 2008 global financial crisis has illustrated the need for tighter regulations and management of banking institutions, approaching banking and money lending in a more intelligent, directed fashion. Emerging Trends in Smart Banking: Risk Management Under Basel II and III discusses some of the latest developments in banking regulations and safeguards to ensure the mitigation of risk and economic collapse. This book is a critical reference in the exploration of business frameworks to identify areas of strength and potential weaknesses, insight that will be of use to business leaders, professionals in the banking industry, and researchers and scholars in all aspects of business and accounting.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright Page
  4. PREFACE
  5. Section 1: Bank Behaviour Change and Banking Regulation
    1. Chapter 1: Theories of Financial Regulation
      1. ABSTRACT
      2. INTRODUCTION
      3. COMMAND-AND-CONTROL MODE
      4. SELF-REGULATION
      5. THIRD WAY REGULATORY APPROACHES
      6. CONCLUSION
      7. REFERENCES
      8. ENDNOTES
    2. Chapter 2: History of Financial Regulation in Australia, United States, and United Kingdom
      1. ABSTRACT
      2. INTRODUCTION
      3. PRE-DEREGULATION PERIOD IN THE US, UK, AND AUSTRALIA
      4. FINANCIAL DEREGULATION IN US, UK, AND AUSTRALIA
      5. CONCLUSION
      6. REFERENCES
      7. ENDNOTES
    3. Chapter 3: Pre-GFC Bank Behaviour Change and Basel Accords
      1. ABSTRACT
      2. INTRODUCTION
      3. THE SHIFT FROM FINANCIAL INTERMEDIATION TO BROKERAGE
      4. STRUCTURED FINANCE PRODUCTS
      5. IMPLICATIONS FOR REGULATION OF BANKING SYSTEM
      6. THE 2008 GLOBAL FINANCIAL CRISIS
      7. CONCLUSION
      8. REFERENCES
      9. ENDNOTES
  6. Section 2: Are Basel II and Basel III “Smart Financial Regulations”?
    1. Chapter 4: The “Smart” Regulatory Framework
      1. ABSTRACT
      2. INTRODUCTION
      3. GOVERNMENTALITY
      4. THE CONCEPT OF REFLEXIVITY
      5. RESPONSIVE REGULATION
      6. SMART REGULATION
      7. CONCLUSION
      8. REFERENCES
      9. ENDNOTES
    2. Chapter 5: The “Smart” Regulatory Features of Basel II and Basel III
      1. ABSTRACT
      2. INTRODUCTION
      3. EVALUATION BENCHMARK
      4. SMART FEATURES OF BASEL II AND BASEL III
      5. CONCLUSION
      6. REFERENCES
      7. ENDNOTES
  7. Section 3: The Solution to the Inadequacies of Risk Methodology of Basel II and Basel III
    1. Chapter 6: The Value-at-Risk Methodology of Basel II and Basel III
      1. ABSTRACT
      2. INTRODUCTION
      3. VARIANCE-COVARIANCE APPROACH
      4. HISTORICAL SIMULATION
      5. MONTE CARLO SIMULATION
      6. VaR BACKTESTING
      7. STRESS TESTING
      8. CONCLUSION
      9. REFERENCES
      10. ENDNOTES
    2. Chapter 7: Coherent Risk Measures
      1. ABSTRACT
      2. INTRODUCTION
      3. EXTREME VALUE THEORY (EVT)
      4. COPULA METHODOLOGY
      5. “COHERENT” RISK MEASURES
      6. EXPECTED SHORTFALL (ES)
      7. DISTORTION RISK MEASURES AND CHOQUET INTEGRAL
      8. CONCLUSION
      9. REFERENCES
      10. ENDNOTES
  8. Section 4: Basel II and Basel III Interviews in Australia: Are They “Smart” in Their Implementation?
    1. Chapter 8: Universal Pragmatics and Communicative Action
      1. ABSTRACT
      2. INTRODUCTION
      3. HABERMAS’ UNIVERSAL PRAGMATICS
      4. THEORY OF COMMUNICATIVE ACTION
      5. CONCLUSION
      6. REFERENCES
      7. ENDNOTES
    2. Chapter 9: Superiority of Basel II over Basel I
      1. ABSTRACT
      2. INTRODUCTION
      3. INADEQUACIES OF BASEL I IN IMPLEMENTATION
      4. IMPROVED AND MORE EFFECTIVE BASEL II
      5. ASSESSMENT OF THE EFFECTIVENESS OF BASEL II IN EMPIRICAL RISK MANAGEMENT AND PRUDENTIAL SUPERVISION PRACTICES
      6. THE ORGANIZATIONAL IMPACT ON THE BANKS AND REGULATORY SUPERVISION PROCESS
      7. CONCLUSION
      8. REFERENCES
      9. ENDNOTES
    3. Chapter 10: Potential Issues from Basel II and Basel III
      1. ABSTRACT
      2. INTRODUCTION
      3. COMPETITIVE DISADVANTAGE AND METHODOLOGICAL BURDEN RELATING TO UNDERLYING RISK METHODS
      4. THE ISSUES WITH EXTERNAL RATINGS
      5. THE ISSUES WITH REGULATORY ARBITRAGE
      6. THE ISSUES ARISING FROM CROSS-BORDER SUPERVISION UNDER BASEL II
      7. THE ISSUES WITH INFORMATION DISCLOSURE
      8. ISSUES RELATING TO PILLAR TWO RISKS
      9. CONCLUSION
      10. REFERENCES
      11. ENDNOTES
  9. Compilation of References
  10. About the Author