BCCI: THE LESSONS FOR BANK SUPERVISORS PART 1: DEFICIENCIES IN NATIONAL SUPERVISORY PRACTICES AND REGULATORY FRAMEWORKS
| Date | 01 February 1992 |
| DOI | https://doi.org/10.1108/eb024765 |
| Pages | 170-184 |
| Published date | 01 February 1992 |
| Author | MAXIMILIAN J.B. HALL |
| Subject Matter | Accounting & finance |
BCCI: THE LESSONS FOR BANK SUPERVISORS*
PART 1: DEFICIENCIES IN NATIONAL SUPERVISORY
PRACTICES AND REGULATORY FRAMEWORKS1
Received: 16th November, 1992.
DR
MAXIMILIAN
J. B.
HALL
DR HALL
GRADUATED WITH A FIRST CLASS HONOURS
DECREE IX ECONOMICS FROM NOTTINGHAM
UNIVERSITY IN 1975. HE RECEIVED A PHD
FROM THE SAME UNIVERSITY IN 1978. HE
JOINED THE STAFF OF THE ECONOMICS
DEPARTMENT AT LOUGHBOROUGH
UNIVERSITY IN 1977 AND IS CURRENTLY A
SENIOR LECTURER IN THAT DEPARTMENT.
DR HALL HAS PUBLISHED FIVE BOOKS (ONE
CO-AUTHORED) IN THE AREAS OF MONEY,
BANKING AND FINANCE, WITH A FURTHER
THREE DUE FOR PUBLICATION LATER THIS
YEAR. HE HAS ALSO CONTRIBUTED SOME 10
ARTICLES TO ACADEMIC AND PROFESSIONAL
JOURNALS. HIS CURRENT RESEARCH
ACTIVITIES EMBRACE UK BANKING
SUPERVISION, CENTRAL AND COMMERCIAL
BANKING DEVELOPMENTS IN THE UK, USA,
JAPAN AND THE EC AND FINANCIAL
REGULATORY ISSUES IN GENERAL.
*An earlier version of this paper was
presented at the 'International Confer-
ence on Business and Economic
Development in Middle Eastern and
Mediterranean Countries' held in
Valetta, Malta during 25-27 May, 1992
and organised by the Foundation for
International Studies of the University of
Malta.
ABSTRACT
This paper is published in two parts. The
first, which
is
published
here,
starts by con-
sidering the background to UK banking
supervision and examining the effective-
ness of the Bank of England and BCCI's
auditors in the supervision of
BCCI.
The
author then assesses the suitability of the
Banking Act 19.87 following which is a
list of recommended reform measures. The
first part of the paper
concludes
with a con-
sideration of banking supervision in
Luxembourg.
Part two of the paper examines deficien-
cies in the international supervision of
banking and will
be
published in the next
issue of The International Journal of
Regulatory Law 'and Practice, Volume
1 Number
3.
INTRODUCTION
On 5th July, 1991, under a Bank of
England-orchestrated operation, co-
ordinated action was taken in more
than 60 countries around the world
to close down the activities of the
banking group Bank of Credit and
Commerce International (BCCI).
The action followed the Bank of
no
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