商业银行Chap002.ppt

* * * * * * * * * * * * * * * * * * * * * * * * The Regulation of Nonbank Financial-Service Firms Competing with Banks (continued) Life and Property/Casualty Insurance Companies State insurance commissions Recently the federal government has become somewhat more involved in insurance When insurers form holding companies to acquire commercial and investment banks or other federally regulated financial businesses, they may come under the Federal Reserve’s review Under the Dodd-Frank Act, a new federal insurance office was set up to help reduce the systemic risk caused by innovative, but sometimes highly risky, activities of the largest insurers (such as AIG) and prevent disruptive insurance failures The Regulation of Nonbank Financial-Service Firms Competing with Banks (continued) Finance Companies Regulated at the state government level for many decades The depth of state regulation varies across the United States Most states focus upon the types and contents of loan agreements they offer the public, the interest rates they charge (with some states setting maximum loan rates), and the methods they use to repossess property or to recover funds from delinquent borrowers Relatively light state regulation has led to a recent explosion in the number of small-loan companies The passage of the Dodd-Frank Act in 2010 caused many to close as the maximum interest rates that these entities could charge was drastically reduced The Regulation of Nonbank Financial-Service Firms Competing with Banks (continued) Mutual Funds The U.S. Securities and Exchange Commission (SEC) requires these businesses to register with that agency, submit periodic financial reports, and provide investors with a prospectus that reveals the financial condition, recent performance, and objectives of each fund Security Brokers and Dealers and Investment Banks A combination of federal and state supervision applies to these traders in financial instruments who buy and sell securities, underwrite