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Conference Paper
Should more supervisory information be publicly disclosed?
Journal Article
The evolution of the payments system: a U.S. perspective
In an article adapted from a speech made to at the Annual Conference of the National Bank of Austria in May of this year, Federal Reserve Bank of Kansas City President Hoenig examines recent and prospective changes in the U.S. payments system. The theme of his remarks is that the rate at which a payments system develops depends largely on a struggle between rapid technological change and natural barriers to new product acceptance. This ongoing conflict explains why Americans have seen revolutionary developments in large-dollar payments but only evolutionary developments in small-dollar and ...
Journal Article
Should more supervisory information be publicly disclosed?
Within our financial system, a bank?s prospects and viability depend on its ability to attract investors and customers. This fundamental need means that banks and bank management must operate under the framework of market discipline and in a manner that meets the dictates of market participants. In other words, market discipline serves as the principal force influencing the performance of our financial markets.> In a speech given at the Federal Reserve Bank of Chicago?s Annual Conference on Bank Structure and Competition, Mr. Hoenig explored how the financial revolution we are now ...
Journal Article
Exploring the macro-prudential aspects of financial sector supervision
In a speech given at the Bank of International Settlements in Basil, Switzerland, in April, President Hoenig discussed how financial supervisors and monetary policymakers can contribute to a stable financial system that fully supports sustainable economic growth. ; Several financial crises in the United States over recent years have also coincided with and been influenced by a period of rapid and path-breaking changes in our financial markets. These changes in our financial structure in turn are altering the nature of the financial crises we experience. Increasingly, crises originate in ...
Journal Article
The U.S. economy: a look ahead
In a speech made to the Missouri Bankers Association in January of this year, President Hoenig of the Federal Reserve Bank of Kansas City was optimistic about our economy's future. The strong performance of the U.S. economy in 1994 is likely to continue in 1995, but at a more moderate and sustainable pace. The long-run outlook for the economy is also very positive.> Achieving our economy's full potential in the coming years, however, should not be taken for granted. Rather, it will depend on how successful we are in promoting open international markets, encouraging savings and investment, and ...
Journal Article
The international community's response to the Asian financial crisis
The U.S. economy just completed another stellar year, marked by strong growth and declining inflation. Indeed, the low inflation of recent years has been instrumental in reinvigorating the U.S. economy, helping unleash a new vibrancy and confidence across the country. However, the shock wave working its way toward us from the Western Pacific will likely be a countervailing force in our economy.> > Financial turmoil in a handful of Asian countries should slow the growth of spending by foreigners on U.S. goods and services. On balance, most economists are currently guessing that reduced demand ...
Journal Article
Bank regulation: asking the right questions
If we are to modernize our regulatory system and allow banks the flexibility to adapt to financial change, it is essential that we ask the right questions about the purposes of bank regulation. Currently, much of the regulatory debate focuses on the age-old question: Where do we draw the line between banks and other financial and nonfinancial institutions? As important as this question is, however, it begs a more fundamental question: Why do we regulate banks differently than other institutions? Unless we can answer this basic question, it is possible that we may never achieve consensus on ...
Journal Article
Maintaining stability in a changing financial system: some lessons relearned again?
Over the past three decades, we have experienced an increased number of financial crises in many countries around the world. These crises have taken place in many different parts of the financial system, including: banking and payments systems, housing finance systems, securities markets, and currency markets. Central banks and other authorities charged with maintaining financial stability have drawn important lessons from each of these crises and have instituted regulatory and policy changes that have helped strengthen the financial system in the wake of these crises. ; Despite our best ...