Study of banking sector design from risk perspective to minimise social costs

摘要

A comprehensive review of the US banking sector design is currently underway with debates among bankers, trade, consumer groups and regulatory agencies on pricing, The Federal Deposit Insurance Corporation (FDIC) bank insurance fund maintenance and coverage levels for new deposit insurance initiative. A macro design framework is proposed as an input to planned improvements. The objective of the proposed conceptual banking sector model is to seek a design where each bank self-monitors its own risk level and controlled by the market forces/discipline. The agency providing risk-based depositors' insurance should breakeven, at minimal, and the stockholders should make an adequate rate of return. In this way, the need for regulations is decreased, the banking sector becomes more stable and the social cost is decreased.