Banking and Effective Capital Regulation in Practice : A Leadership Perspective book cover
1st Edition

Banking and Effective Capital Regulation in Practice
A Leadership Perspective

ISBN 9780367523626
Published May 30, 2022 by Routledge
162 Pages 7 B/W Illustrations

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Book Description

Due to a historical lack of attention to the importance of modelling, measuring and managing risk, senior bank leaders are struggling to implement unified practices within their financial institutions that could address the gaps posed by risky management behaviour, rogue trading, liquidity crises, prohibited investments in mortgage-backed securities, and default risks aligned with loans. This book discusses the theories at play between bank agents (bank managers) and their principals (shareholders), a topic which has gained importance as a result of the banking crisis, and similarly, governed the need for more efficient risk management and ethical managerial practices.

The author worked with a senior bank leadership team to identify and describe effective capital regulation practices that can lead to a reduction in loss and risky management behavioural practices. The book offers consensus on a number of activities that bank managers can implement to address bank risk. It analyses the relevant factors that determine the necessity for banking regulation and the important role of regulation in managing banking crises. The author’s analysis of the important regulatory aspects in developed countries such as the US, offers a useful conceptual framework for creating an adequate banking regulatory environment in developing countries.

This book offers an original contribution to the field of banking that undergraduate, masters, PhD students, academics and researchers can use to gain a deeper understanding of the constructs at play in the banking industry.

Table of Contents

List of Tables

List of Figures



About the Author

Outline of Chapters

Part 1: Mega Banks Significant Losses

Chapter 1: Losses of Mega Banks and Economic Impact

Chapter 2: Bank Managers Practices and Significant Losses

Chapter 3: Risky Management Practices and Principal Theory

Chapter 4: Risky Management Practices and Goal Theory

Chapter 5: OCEG Standards

Part 2: Government Regulations and Compliance Environment

Chapter 6: Dodd-Frank Bill 2010 and Regulatory Environment

Chapter 7: Risk Management Efforts and Excessive Risk Taking

Chapter 8: Governance and Monetary Policy

Chapter 9: CCAR and DFAST Testing

Chapter 10: Bank Manager’s Failed CCAR and DFAST Efforts

Part 3: Bank Leadership Consensus on Capital Regulation Practices

Chapter 11: Understanding Capital Regulation Challenges

Chapter 12: Risk Appetite, Capital Structure, Stress Test and Governance

Chapter 13: Risky Identification and Communication

Chapter 14: Timely Reporting

Chapter 15: Assurance Functions

Chapter 16: Compliance Analytics

Chapter 17: Comprehensive Risk Management Framework


Appendix A: First Round Questionnaire


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Sophia Velez has over 16 years of experience as a Certified Public Accountant (CPA), providing consulting services to large banks.