In the aftermath of the 2008 global financial crisis, many governments are seeking ways to improve their banking regulation systems in the interests of both economic health and consumer protection. Among the globally competitive countries that withstood the crisis with no significant disruption, Israel stands out, suggesting that other countries might benefit from an in-depth analysis of its banking system. This is the first book in English to provide such an analysis, emphasizing the crucial balance between prudential regulation and conduct of business regulation, which in Israel are both regulated by the same agency, unlike the ‘Twin Peaks’ model that prevails in other market-based economies.
With recommendations that are highly applicable to many countries, the book examines a broad range of issues that are of current concern to the banking community worldwide. Among these issues are the following:
- - the architecture of financial regulation;
- - nationalization and privatization of banks;
- - conflicts of interest in the banking system resulting from universal banking;
- - problems of concentration and lack of competitiveness in the banking system;
- - the growing power of institutional investors and their entry into traditional banking activities;
- - mechanisms for recovery and resolution in the event of a bank failure;
- - new models of banking regulation, such as self-regulation and contractual regulation; and
- - bank consumer protection, complaint handling and redress.
Even though the book focuses on Israeli banking regulation, its detailed attention to the development of a suitable supervisory model is of immeasurable international value for regulators, lawyers, bankers, academics, and business people who are in any way connected to the banking world; particularly following the 2008 crisis and its devastating effects. It is sure to be of service as many jurisdictions continue to search for optimal tools designed to prevent another such crisis.