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Prudential Supervision of Australian Banks

Author

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  • W.P. HOGAN
  • IAN G. SHARPE

Abstract

The paper provides a description of the existing legislative basis for prudential supervision in Australia, traces the development of a more formal approach, and critically assesses existing legislation and the bank examination process. Particular emphasis is devoted to the role of external auditors as quasi bank examiners.

Suggested Citation

  • W.P. Hogan & Ian G. Sharpe, 1990. "Prudential Supervision of Australian Banks," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 127-145, June.
    • Handle: RePEc:bla:ecorec:v:66:y:1990:i:2:p:127-145
    DOI: 10.1111/j.1475-4932.1990.tb01713.x
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    References listed on IDEAS

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    1. James, Christopher, 1987. "Some evidence on the uniqueness of bank loans," Journal of Financial Economics, Elsevier, vol. 19(2), pages 217-235, December.
    2. Goodhart, C A E, 1987. "Why Do Banks Need a Central Bank?," Oxford Economic Papers, Oxford University Press, vol. 39(1), pages 75-89, March.
    3. repec:bla:ecorec:v:60:y:1984:i:168:p:34-44 is not listed on IDEAS
    4. Eric Rosengren, 1986. "Is there a need for regulation in the government securities market?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 29-40.
    5. Warren P. Hogan & Ian G. Sharpe, 1984. "Regulation, Risk and the Pricing of Australian Bank Shares, 1957–1976," The Economic Record, The Economic Society of Australia, vol. 60(1), pages 34-44, March.
    6. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
    7. W. P. Hogan & I. G. Sharpe, 1983. "On Prudential Controls," Economic Papers, The Economic Society of Australia, vol. 2(S1), pages 144-165, April.
    8. Hogan, W.P. & Sharpe, I.G. & Volker, P.A., 1979. "Regulation, Risk And The Pricing Of Australian Bank Shares, 1957-76," Working Papers 29, University of Sydney, School of Economics.
    9. W. F. Sharpe, 1981. "Bank Capital Adequacy, Deposit Insurance, and Security Values," NBER Chapters, in: Risk and Capital Adequacy in Commercial Banks, pages 187-202, National Bureau of Economic Research, Inc.
    10. Portes,, 1987. "Threats to International Financial Stability," Cambridge Books, Cambridge University Press, number 9780521347891, October.
    11. Kida, T, 1980. "An Investigation Into Auditors Continuity And Related Qualification Judgments," Journal of Accounting Research, Wiley Blackwell, vol. 18(2), pages 506-523.
    12. Aharony, Joseph & Swary, Itzhak, 1983. "Contagion Effects of Bank Failures: Evidence from Capital Markets," The Journal of Business, University of Chicago Press, vol. 56(3), pages 305-322, July.
    13. Warren P. Hogan & Ian G. Sharpe, 1988. "Supervision Of Bank Exit: A Note," Economic Papers, The Economic Society of Australia, vol. 7(2), pages 71-77, June.
    14. David Russell, 1988. "Banks, Supervisors And Auditors," Economic Papers, The Economic Society of Australia, vol. 7(4), pages 1-8, December.
    15. Marcus, Alan J & Shaked, Israel, 1984. "The Valuation of FDIC Deposit Insurance Using Option-pricing Estimates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 446-460, November.
    16. Izan, Haji Y, 1980. "Mandatory Audit Regulation for Banks: An Empirical Evaluation of Its Effects," The Journal of Business, University of Chicago Press, vol. 53(4), pages 377-396, October.
    17. Hogan, W.P., 1989. "Prudential Regulation of Bank Ownership and Control," Economic Analysis and Policy, Elsevier, vol. 19(1), pages 73-89.
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    Cited by:

    1. Sharpe, Ian G. & Tuzun, Tayfun, 1997. "The underinvestment hypothesis and off-balance sheet direct credit substitutes," Pacific-Basin Finance Journal, Elsevier, vol. 5(3), pages 325-344, July.
    2. Carolyn Currie, 1991. "The Need for Reform of the Australian Financial Regulatory System," Working Paper Series 9, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    3. Dennis, Steven A. & Sim, Ah Boon, 1996. "An evaluation of the deposit insurance subsidisation of Australian banks," Pacific-Basin Finance Journal, Elsevier, vol. 4(4), pages 421-435, December.
    4. Peter Docherty & Ron Bird & Timo Henckel & Gordon Menzies, 2016. "Australian prudential regulation before and after the global financial crisis," CAMA Working Papers 2016-49, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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