Part I The Elements of Bank Financial Supervision, 2 Why are Banks Supervised?
- Bank supervision — Basel committee on Banking Supervision — Basel 2 — Bonds
2.01 The starting point for a discussion of bank regulation is to ask why banks should be regulated to any greater extent than, say, car manufacturers. It would be reasonable (although cowardly) to avoid this issue altogether, and to begin from the proposition that they just are. However, it is helpful in understanding some of the issues which arise in the context of bank regulation to have a clear idea of what it is that the banking regulatory system is ostensibly trying to achieve. 2.02 The locus classicus of bank supervision is the statement of the Basel...