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Article
Publication date: 1 June 2004

Donato Masciandaro

The objective of this work is to analyse worldwide trends in financial supervision architectures. The focus is on the key issue in the debate – the single supervisor…

1297

Abstract

The objective of this work is to analyse worldwide trends in financial supervision architectures. The focus is on the key issue in the debate – the single supervisor versus multiauthority model – in order to build up indexes of supervision unification, essential to perform studies on the causes and effects of various supervisory regimes. First, the paper introduces a Financial Authorities’ Concentration (FAC) Index. A comparative analysis of 69 countries confirmed that an increase in the degree of concentration of supervisory powers is evident in the developed countries, and particularly in the European Union. Secondly, the paper considers the nature of the institutions to which control responsibilities are entrusted. In particular, the role the central bank plays in the various national institutional settings is examined. An index of the central bank’s involvement in financial supervision is introduced, the Central Bank as Financial Authority (CBFA) Index. Each national institutional structure can be identified with the two above characteristics. Two models are the most frequent: (a) countries with a high level of unification of powers and weak central bank involvement (single financial authority regimes); and, (b) countries with a low level of unification of powers and strong central bank involvement (central bank dominated multiple supervisor regimes). A trade‐off therefore emerges between the degree of financial sector unification and the role of the central bank. Two possible explanations of this relationship emerged: the blurring hazard effect and the monopolistic bureau effect.

Details

Journal of Financial Regulation and Compliance, vol. 12 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 1 April 2001

Donato Masciandaro and Umberto Filotto

The objective of this paper is to illustrate the link between the effectiveness of the anti‐money laundering regulations and the characteristics of the compliance costs…

929

Abstract

The objective of this paper is to illustrate the link between the effectiveness of the anti‐money laundering regulations and the characteristics of the compliance costs involved for banks. The work is set out as follows. The next section describes the economic framework, which starts with the assumption that intermediaries have an advantage in terms of information and then demonstrates, by means of a principal‐agent model, how this advantage can produce collective gains in the war against money laundering only if the regulations take the problem of compliance costs into due consideration.

Details

Journal of Money Laundering Control, vol. 5 no. 2
Type: Research Article
ISSN: 1368-5201

Article
Publication date: 1 March 1998

Donato Masciandaro

The analysis of the interactions between the criminal economy and the financial markets has not yet been systematically studied by the economists. This study belongs to a…

Abstract

The analysis of the interactions between the criminal economy and the financial markets has not yet been systematically studied by the economists. This study belongs to a current research interested in this area, ie the economic analysis of money laundering. The work is organised as follows.

Details

Journal of Money Laundering Control, vol. 2 no. 1
Type: Research Article
ISSN: 1368-5201

Article
Publication date: 1 January 2000

Donato Masciandaro

The present study provides an economic and empirical framework to examine the role of organised crime in an entrepreneurial crisis. The effect of criminal pollution on law…

Abstract

The present study provides an economic and empirical framework to examine the role of organised crime in an entrepreneurial crisis. The effect of criminal pollution on law firms depends on financial — money‐laundering and usury — as well as non‐financial crimes — extortion and unfair competition.

Details

Journal of Financial Crime, vol. 7 no. 3
Type: Research Article
ISSN: 1359-0790

Article
Publication date: 8 May 2009

Donato Masciandaro, Maria Nieto and Marc Quintyn

The purpose of this paper is to review current trends in reforms of the supervisory architecture in European Union (EU) countries.

Abstract

Purpose

The purpose of this paper is to review current trends in reforms of the supervisory architecture in European Union (EU) countries.

Design/methodology/approach

Against the background of the debate on the advisability of further centralizing prudential supervision in the EU this paper develops a study of applied institutional economics, analyzing the financial supervisory architecture of each of the 27 EU countries and assesses their degree of institutional convergence. The paper investigate whether the recent wave of reforms are leading to a convergence of the national architectures.

Findings

While the degree of supervisory convergence is low, there is no single superior model of bank supervision.

Originality/value

The paper contributes to the debate on convergence of supervisory architectures in EU member countries.

Details

Journal of Financial Regulation and Compliance, vol. 17 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 14 November 2008

Lucia Dalla Pellegrina and Donato Masciandaro

This paper aims to investigate the role of the quality of government on financial supervisory structures in different countries.

1076

Abstract

Purpose

This paper aims to investigate the role of the quality of government on financial supervisory structures in different countries.

Design/methodology/approach

The objectives are pursued by means of econometric tools based on probit and multinomial logit techniques.

Findings

It is found that the quality of government plays a crucial role in determining supervision unification. “Good” policymakers (helping hand types) prefer a unified financial authority while “bad” ones (grabbing hand type) choose specialized or hybrid models depending on how powerful is the central bank.

Research limitations/implications

Research limitations are represented by the endogenous nature of political variables with respect to the supervisory design. Suggestions for future research rely on finding adequate instrumental variables to be included in the empirical analysis in order to address causality issues.

Practical implications

The paper follows a positive approach, explaining why different supervisory structures are observed around the world. As a consequence, it does not provide any normative implication.

Originality/value

Its original contribution can be identified in the first attempt to include political preferences in determining the choice among different regimes of financial supervision.

Details

Journal of Financial Regulation and Compliance, vol. 16 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 1 April 2000

Donato Masciandaro

This paper presents a macroeconomic framework useful to the analysis of the relationships between the illegal sector, money laundering and the legal economy from a human…

Abstract

This paper presents a macroeconomic framework useful to the analysis of the relationships between the illegal sector, money laundering and the legal economy from a human as well as a financial viewpoint. Economists have not yet systematically studied the interactions between illegal sectors, money‐laundering activities and the legal market. This study is part of a larger area of research which takes a particular interest in the economic analysis of money laundering. In previous years this author has developed a microeconomic analysis of the money‐laundering mechanisms and of the related regulations; this is a deeper examination of the macro consequences.

Details

Journal of Financial Crime, vol. 8 no. 2
Type: Research Article
ISSN: 1359-0790

Article
Publication date: 1 October 2003

Donato Masciandaro and Alessandro Portolano

Focuses on the features of some countries that make them more likely to offer money laundering services, arguing that these tax havens are structurally different from…

Abstract

Focuses on the features of some countries that make them more likely to offer money laundering services, arguing that these tax havens are structurally different from other countries: they lack significant resources for trading internationally, which pushes them to generate income through a lax supervisory regime, yet their smallness makes them less attractive to criminal organisations. Takes a relational approach which focuses on the exchange between the centre and its criminal customers, developing a supply and demand schedule for money laundering regulation and a game structure (with mathematics) for the relationship between Offshore and Criminal. Argues that because of the complex and perverse competitive factors involved, a pure “name and shame” approach by anti‐money laundering policy makers may be counterproductive.

Details

Journal of Money Laundering Control, vol. 6 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 July 2004

Donato Masciandaro

Deals with the relationship between migratory flows and financial flows from the viewpoint of economic analysis. Points out the differences between migrants and host…

Abstract

Deals with the relationship between migratory flows and financial flows from the viewpoint of economic analysis. Points out the differences between migrants and host populations as this relates to the demand for banking and financial services, for instance the importance to migrants of remittances to their home countries. Analyses the similarities and differences between money laundering and money dirtying (ie financing terrorism) and between formal and informal banking systems and the need for concealment. Focuses on the Italian case, exploring whether there is a relationship between the existence of migration and the risk of terrorist financing. Concludes that empirical aggregate analysis cannot support the existence of a link between intensification of migration flow and the risk of financing Islamic terrorism.

Details

Journal of Money Laundering Control, vol. 7 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 October 2006

Donato Masciandaro

The aim of this research paper is to discuss the crucial difference between financial offshores and fiscal offshores.

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Abstract

Purpose

The aim of this research paper is to discuss the crucial difference between financial offshores and fiscal offshores.

Design/methodology/approach

The paper combines narrative with argument and analysis.

Findings

It is shown that the decision of a few countries and territories to adopt lax financial regulation do not coincide with those that institute competitive taxation policies. From a methodological point of view, the classic intuition of Becker is intertwined with the new political economy approach, in order to review and comment on empirical tests.

Originality/value

The paper suggests common guidelines for the design of international policy against money laundering and the financing of terrorism.

Details

Journal of Money Laundering Control, vol. 9 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

1 – 10 of 17