Angol
The 1990s have shown that financial crises can be all too frequent, even in developed and apparently stable societies like the Nordic countries. It is never possible to remove the risk that occurs in banking, but it is possible to provide incentives to get banks to run themselves well an encourage all who have something at risk from poor bank management to act through markets to encourage prudence. Unfortunately, the system of safety nets and the bailing out of banks that is continuing even today encourages the taking of risks at the expense of the taxpayer and the rest of society. In a rapidly developing world with globalisation, the development of IT and innovation in products and organisations, it is increasingly difficult to manage the system: if very large banks get into difficulty the costs will be spectacular. Dealing with these problems requires cooperation across borders and the widespread availability of information in an area characterised by secrecy. By reference to and comparison of the experience of banks throughout the EU and the US, Mayes, Halme and Liuksila address the problems facing today's international banks by providing a comprehensive approach to improving banking supervision and regulation. Their suggestions include the development of transparent corporate structures, public disclosure of information to allow markets to assess banks, and the implementation of effective means to allow banks to exit without unacceptable costs to society.
