We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

A Critical Review of Financial Regulation-Supervision in the Central Bank: A Comparison between the United States and the UK - Essay Example

Comments (0) Cite this document
Summary
Regulation of financial institutions, both foreign and domestic, is the proverbial glue that holds the global financial market together. These are the laws that govern how financial institutions can and do operate and what laws they must abide by within these dealings…
Download paper
GRAB THE BEST PAPER
A Critical Review of Financial Regulation-Supervision in the Central Bank: A Comparison between the United States and the UK
Read TextPreview

Extract of sample
A Critical Review of Financial Regulation-Supervision in the Central Bank: A Comparison between the United States and the UK

Enacted by the World Trade Organization (WTO) during the Uruguay Round negotiations, GATS determines whether and to what extent global economies are coming together into a single pattern. Despite such treatises, there are significant differences between the regulatory standards in banking between the United States and the United Kingdom, and this will be the focus of this paper.
Although finance has become one of the most globally integrated sectors in the world, financial mobility and competition causes international differences that are systematic and resilient. However, the similarities between the organizational structure of the British and American financial regulatory systems have significantly diverged since the UK consolidated its financial regulatory agencies within the unified body of the Financial Services Authority (FSA) and the financial system of the United States has remained decentralized and fragmented with a consortium of governing agencies. Comparatively, the U.S has a more ambitious regulatory agenda that encourages a more elaborate system of financial oversight that is inherently more difficult to consolidate. Contrarily, the goals of the financial regulators in the UK are more unpretentious and cost effectiveness is one of the country’s regulatory objectives in the field of financial regulation policy, which tends to promote a less awkward system of financial guidelines that more adequately accommodates consolidation of regulatory functions....
though British fiscal regulation is less rigorous than financial policies in the United States, both policies have a profound effect on the greater structure of global finance. The recent global financial crisis has put tremendous strain on both the financial markets of the U.S. and the UK, which has put both fiduciary structures under close scrutiny. The U.S. banking system and the UK financial system are nationally regulated by two separate governing bodies. The banking system of the U.S. is predominantly regulated under the Federal Reserve Act (FRA) (Federal Reserve Board (FRB), 2010) and the FDIC (Federal Deposit Insurance Corporation) (FDIC, 2009), while the UK financial system has recently been consolidated under the FSA (FSA, 2011). However, the overall motivation of prudential regulation remains the same internationally, despite the differentiations between the governing entities. The overall purpose of the regulatory bodies is to protect the banking system from financial crises by monitoring individual transactions to ensure that adequate collateral was presented and creating and enforcing regulations concerning self-dealing, capital requirements, and entry restrictions (Hellmann, Murdock, and Stiglitz, 2000). Additional optional restrictions could be placed on real estate lending and interest rates and the implementation of deposit insurance has been added for improved financial security (Hellmann, Murdock, and Stiglitz, 2000). Concerns also led many countries to establish central banks to serve as last resort lenders (Hellmann, Murdock, and Stiglitz, 2000), primarily for other banks. Literature Review organization of u. s. banks The Federal Reserve is the central bank of the United States and responsible for regulating the U.S. monetary system, determining ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“A Critical Review of Financial Regulation-Supervision in the Central Essay”, n.d.)
Retrieved from https://studentshare.net/macro-microeconomics/1420-a-critical-review-of-financial-regulation-supervision-in-the-central-bank-a-comparison-between-the-united-states-and-the-uk
(A Critical Review of Financial Regulation-Supervision in the Central Essay)
https://studentshare.net/macro-microeconomics/1420-a-critical-review-of-financial-regulation-supervision-in-the-central-bank-a-comparison-between-the-united-states-and-the-uk.
“A Critical Review of Financial Regulation-Supervision in the Central Essay”, n.d. https://studentshare.net/macro-microeconomics/1420-a-critical-review-of-financial-regulation-supervision-in-the-central-bank-a-comparison-between-the-united-states-and-the-uk.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Financial Regulation and Supervision
This essay discusses that reliable and versatile debit and credit card processing service not only enhances business operations, but also increases sales. A reliable and first-rate efficient credit and debit card processing service enables individuals to accept payments anywhere, accept all payment forms, and access security and fraud protection.
10 Pages(2500 words)Essay
Islamic Banking and the Financial Crisis
According to Mavrakis (2009, pp. 2 – 5), Islamic finance has emphasised on trying to remove completely any interest involved in financial transactions. The Quran, which is the Divine revelation presented to Prophet Mohammed, who is the Prophet of Islam, expressly forbids charging of interest, or riba, and Prophet Mohammad himself emphasised on this as mentioned in the Hadith, which is the other source of Islamic law, the Shariah.
12 Pages(3000 words)Essay
Financial regulation in the UK
ing and overseeing economic organisations and markets, which encompasses the central bank's function in this area. A centred topic in the argument the span to which economic guideline in the connection between various undertakings should be incorporated and if blame for economic guideline and supervision should be vested in one institution; One of the most fundamental alterations in institutional structure was the conclusion in the UK in 1997.
9 Pages(2250 words)Essay
Comparison between life in Saudi Arabia and the United States
Life of an individual is greatly influenced by the culture he/she lives in. This paper draws a comparison between the life in Saudi Arabia and that in the United States. Life in Saudi Arabia is totally influenced by the religion Islam. In Saudi Arabia, the local people of Saudi Arabia who are mostly Muslims can be actually seen practicing Islam unlike many other Muslim countries, whose citizens are not as practicing towards their religion in general.
3 Pages(750 words)Essay
Financial Regulation & Supervision. Andrews Bank case study
Regulation and supervision in the financial sector is one of the most studied and evaluated elements. In the past years, the world has witnessed several issues and problems related to lax regulation and supervision in the financial arena.
9 Pages(2250 words)Essay
Financial Regulation & Supervision
The changed face of business has brought changes in the way the transactions occur through debit cards and credit cards, and the issue of security that has often been cited as a barrier to ecommerce (May, 2000, p.165). In response to such a barrier, firms engaged in such business have continuously assisted establishment of set of standards known as PCI DSS that today governs all the firms engaged in online transactions in the developed world.
9 Pages(2250 words)Essay
The financial crisis of 2007-2010 was it simply the result of lax regulation, or were a range of factors at play (50 marks). I
The news that were most shocking was the filing of the bankruptcy protection by some of the major house mortgage lenders like New Century Financial Corporation that was regarded to be the largest in USA and Northern Rock that was largest in UK, filing of bankruptcy petition by Bear Stearns to bail out two of its hedge fund and at the same time JP Morgan Chase acquiring Bear Stearns, liquidation of Lehman Brothers with pre bankruptcy petition assets of value $700 billion, acquisition of Merrill Lynch by Bank of America, Federal Reserve Bank taking the control of American International Group (AIG) and Morgan Stanley and Goldman Sachs becoming the holding company of the bank (Mazumdar and Ahmad
15 Pages(3750 words)Essay
Financial regulation in the UK
A centred topic in the argument the span to which economic guideline in the connection between various undertakings should be incorporated and if blame for economic guideline and supervision should be vested in one
9 Pages(2250 words)Essay
Comparison between the Indiana Constitution and the United States Constitution
There are some differences in the preamble, the Indiana Constitution begins with the words “TO THE END …” and the United States Constitution begins with the words “We the People of the United States…” Another
2 Pages(500 words)Essay
Is it free market or regulated financial systems that underpin long-term economic success and effective corporate governance
In as much as the western world inclines to a more capitalistic structure that is more relaxed and market-oriented, the eastern side is a mix of controlled and market economies whose blend has been critical in catalysing growth in the region. Theory asserts
8 Pages(2000 words)Essay
Let us find you another Essay on topic A Critical Review of Financial Regulation-Supervision in the Central Bank: A Comparison between the United States and the UK for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us