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International Banking: Strengthening the Framework for Supervising International Banks

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Report Type Reports and Testimonies
Report Date March 21, 1994
Report No. GGD-94-68
Subject
Summary:

Although international banking has grown and become the foundation for the global economy, no one regulator oversees international banks to ensure the safety and soundness of the entire system. In each country, bank supervisors are responsible for the quality of their supervision efforts but coordination with supervisors in other nations is purely voluntary. This report (1) reviews efforts by the Basle Committee on Banking Supervision, the principal mechanism by which regulators work to coordinate banking supervision; (2) assesses the effectiveness of the committee's approach and the extent to which the committee is pursuing options to bolster its role; and (3) analyzes whether the U.S. Foreign Bank Supervision Enhancement Act of 1991 can be one model for implementing into national law the Basle committee standards to promote adequate international banking supervision.

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