The Dodd-Frank Act of 2010 is the keystone policy response directed at reforming U.S. financial system activities and oversight in the wake of the 2007-2009 financial crisis. The United States also has financial system reform policy commitments in the international arena, including in particular by virtue of its membership in the G20. This analysis considers U.S. policy initiatives related to a core dimension of financial system reform: risks posed by systemically important financial institutions ("SIFIs"). It provides a comparison of SIFI policy initiatives and timetables under both the Dodd-Frank Act and the G20 agenda, as reflected in the ongoing work plan of the Financial Stability Board (FSB), and poses the question "Are U.S. domestic and international financial system reform commitments in sync?" While finding that, fundamentally, the answer is "yes," the detailed comparison yields two caveats with potential policy implications. First, the two agendas differ in their relative emphasis on the coverage of both banks and nonbanks. The G20/FSB focus, at least over the near-term, is bank-centric compared with the Dodd-Frank Act, which consistently addresses both bank and nonbank financial firms. Second, implementation of Dodd-Frank Act provisions is subject to long-established U.S. law mandating that there be sufficient opportunity for public input into the rulemaking process, whereas the G20/FSB process has been less systematic and transparent on public consultation and feedback. The lesser emphasis on transparency and public input characterizing the G20/FSB policy development process may be attributable in part to the somewhat more rapid pace of the G20/FSB agenda relative to corresponding Dodd-Frank Act timelines. These observations may be relevant to the current debate over the speed and scope of Dodd-Frank Act implementation measures, and to the discussion about the future international competitiveness of U.S. banks and nonbank financial firms.

The past two decades have witnessed both tremendous change and tremendous growth in the financial sector in countries across the globe. At the same time, however, many countries in the world have experienced banking crises, sometimes leading to costly bank failures and overall disruption in economic activity. The changes in the banking landscape and banking crises have focused policy makers' and industry participants' attention on the appropriate role and structure of banking supervision and regulation. As countries make different choices in these regards, it is useful to inquire if there are fundamental principles countries can follow to insure financial system stability and growth. This book does not presume to outline such principles, but it does take two necessary steps in that direction: first, it identifies basic issues in banking regulation and supervision; and second, it presents information on how countries around the globe have addressed these issues in their bank regulatory and supervisory schemes. The study draws on recent research and detailed cross-country data, including data from a new World Bank survey of bank regulation and supervision world-wide, to focus on some of the underlying reasons for and implications of developments in a variety of areas. These include the following: the nature and changing role of banks in promoting economic growth, development and stability; restrictions on the scope of banking activities and allowable ownership arrangements in which to conduct them; the structure and scope of bank regulatory and supervisory schemes; supervisory practices to promote safe and sound banks; market discipline and corporate governance in banking; international co-operation in regulation and supervision; offshore banking; potential disputes in banking arising from World Trade Organization membership; and deposit insurance schemes.