Bank Regulation: Effects on Strategy, Financial Accounting and Management Control discusses and problematizes how regulation is affecting bank strategies as well as their financial accounting and management control systems. Following a period of bank de-regulation, the new millennium brought a drastic change, with many new regulations. Some of these are the result of the financial crisis of 2008-2009. Other regulations, such as the introduction in 2005 of International Financial Reporting Standards (IFRS) for quoted companies in the EU, can be related to the introduction of a new global accounting regime.
It is evident from annual reports of banks that the number of new regulations in recent years is high and that they cover many different functional areas. The objectives of these regulations are also ambitious; to improve governance and control, contributing to a high level of financial stability for banks. These objectives are obviously of great concern for an industry that directly and indirectly affects the financial situation not only of individuals and organizations but also nation states.
Considering the importance of banks in society, it is of little surprise that the attention of both scholars and practitioners has been directed towards how banks comply with new regulations and if the intended objectives of the regulations are met. This book will be of great value to all those interested in financial stability matters (practitioners, policy-makers, students, academics), as well as to accounting and finance scholars.
Table of Contents
Part 1: An Introduction to How Regulations Affect Banks
1. Why All Banks Cannot Be Governed and Managed in the Same Way
2. Accounting and Control in Banks: A Literature Review
Jason Crawford, Shruti Kashyap, Fredrik Nilsson, Anna-Karin Stockenstrand, and Marcus Tirmén
Part 2: A Regulatory Perspective
3. Banks, Regulators, Market Actors, and Scrutinizers
4. Regulating Transaction-based and Relationship-based Elements in Firm–Bank Exchanges
Magnus Norberg and Anna-Karin Stockenstrand
5. Transparency and Accountability in the European Financial Sector: The Markets in Financial Instruments Directive (MiFID) and Beyond
6. Regulating Interest-free Banking
Part 3: A Strategic Perspective
7. The Impact of Changing Regulatory Environments on Bank Executives’ Strategy Formation
Annoch I. Hadjikhani, Andreas Pajuvirta and Peter Thilenius
8. The Cooperative Split: Balancing External Regulation and the Cooperative Ideal in a Dutch Bank
Martijn van der Steen
9. Controlling Bank’s IT in the Wake of Increasing Regulatory Demands: A Swedish Perspective
10. Banks, Employees, and Competence in a Changing Swedish Economy
Sven Jungerhem and Mats Larsson
Part 4: A Financial Accounting and Management Control Perspective
11. Financial Reporting Issues and Their Connection to Strategy and Management Control Aspects in Swedish Banks 1998-2012
12. Three Lines of Defense for Organizing Risk Management
Olof Arwinge and Nils-Göran Olve
13. One Regulation, Diverse Banks
Viktor Elliot and Mikael Cäker
14. The Behavioral Impact of External and Internal Factors on SME Loan Assessments
Part 5: The Effects of Regulations
15. Conclusions and Implications
Anna-Karin Stockenstrand is an Assistant Professor in the Department of Business Studies, Uppsala University Sweden.
Fredrik Nilsson is a Professor of Business Studies, specializing in Accounting, at Uppsala University, Sweden.