A growing number of observers have proposed using subordinated notes and debentures (SND) as a way of increasing market discipline on banks and banking organizations. Although policy proposals vary, all would mandate that banks subject to the policy must issue and maintain a minimum amount of...

The use of market discipline as a complement to bank supervision and regulation has gained greater acceptance in the United States and abroad. It is also widely recognized that effective market discipline depends on market participants' having information about the risks and financial condition...

The cost of government regulation has become a political issue in recent years, and the cost is no less controversial for banks than for other types of businesses. The controversy has prompted several studies of regulatory costs in banking. This paper evaluates the evidence from those studies,...