The European "Single Market" in financial services, the quest for international harmonization of supervisory practices and the numerous failures of financial institutions during recent years - notably BCCI - have highlighted the need for a reappraisal of the regulation of financial markets and institutions. Focusing on the banks incorporated in the "Golden Triangle" - London, New York and Tokyo - this book compares and assesses the regulatory and supervisory frameworks established to protect depositors and investors and preserve overall financial stability. The world-wide trends towards deregulation and internationalization of financial markets have been important in abolishing artificial restraints on banks' business operations and improving efficiency. However, prudential controls are necessary as a means of protecting both investors from conflicts of interest and the system as a whole from the failure of any of its constituent parts. Dr Hall - an authority on financial regulation - critically assesses the strengths and weaknesses of regulatory practices in the UK, US and Japan.
He highlights the often conflicting requirements of regulation which seeks, at one and the same time, to secure consumer protection and financial stability, and to maximize efficiency.