金融机构管理Chap002.pptVIP

Legislation (continued)… 1991 FDIC Improvement Act Introduced Prompt Corrective Action Risk-based deposit insurance premiums Limited “too big to fail” Extended federal regulation over foreign bank branches and agencies Legislation (concluded) 1994 Riegle-Neal Interstate Banking and Branching Efficiency Act Permits BHCs to acquire banks in other states Invalidates some restrictive state laws. Permits BHCs to convert out-of-state subsidiary banks to branches of single interstate bank Newly chartered branches permitted interstate if allowed by state law 1999 Financial Services Modernization Act Financial Services Modernization Act Allowed banks, insurance companies, and securities firms to enter each others’ business areas Provided for state regulation of insurance Streamlined regulation of BHCs Prohibited FDIC assistance to affiliates and subsidiaries of banks and savings institutions Provided for national treatment of foreign banks Proposed 2010 Financial Services Regulatory Overhaul Bill Financial Services Oversight Council Power to break up FIs that pose a risk to the system Consumer Financial Protection Agency GAO audit of Federal Reserve Activities Nonbinding proxy on executive pay Clearinghouses for some derivatives Industry Performance Economic expansion and falling interest rates through 1990s Brief downturn in early 2000 followed by strong performance improvements Record earnings $106.3 billion 2003 Performance remained strong through mid 2000s as interest rates rose Late 2000s: Strongest recession since 1930s Savings Institutions Comprised of: Savings and Loans Associations Savings Banks Effects of changes in Federal Reserve’s policy of interest rate targeting combined with Regulation Q and disintermediation Effects of moral hazard and regulator forbearance Qualified Thrift Lender (QTL) test Savings Institutions: Recent Trends Industry is smaller overall Intense competition from other FIs Mortgages, for example Primary Regulators Office of Thrift Supervis