World Banking Revolution: The Legal Perspective


Way-Wen Yang

Date of Award


Document Type

Dissertation - Closed Access

Degree Name

Doctor of Juridical Science (S.J.D.)


Duke University School of Law


The world banking industry has been revolutionized over the last two decades. Its activities have been globalized, creating a truly worldwide market for bank services and deposits. Banking systems and banking markets, both domestic and international, have been undergoing a series of profound changes. Many new financial instruments and techniques have been developed, and existing ones have been modified; new financial markets have been established, and those in existence have been adjusted to meet new demands and new circumstances. Meanwhile, with the growing competition between all types of financial intermediaries, traditional demarcations, both functional and geographic, have faded. The main driving forces of these worldwide changes are innovations in new information technologies, increasing interdependence in the world economy, and the internationalization of finance and the consequent competition in banking and financial services. Against this background, changes in banking legislation and regulation have sometimes encouraged these trends and sometimes adapted to them. In effect, structural changes in world banking markets have led regulators to reconsider traditional approaches to supervision and regulation and to develop new more flexible approaches to bank regulation.

This dissertation explores the major legal aspects of the revolutionary changes in the world banking industry. This dissertation has four broad purposes. The first is to examine in great detail banking regulatory changes ( deregulation and reregulation) taken in two representative countries, the United States and Taiwan, and to identify the economic forces responsible for those changes. The nature of the developments in these markets and relationships between them are scrutinized, as is the impact of the world banking revolution. The second purpose of this dissertation is to explore the implications for regulatory policy of the persistent regulatory changes in these banking markets. Of particular concern are 1) whether these regulatory changes are making these banking systems more compatible with today's global financial marketplace; and 2) whether the regulatory changes are making them more susceptible to a financial crisis. The third purpose is to determine whether changes in these banking systems need to be made, and if so, what · those changes should be. The fourth is to argue for new and appropriate regulatory responses -- harmonization and self-regulation -- to the challenges that will be presented by the economic forces in banking regulation into the Twenty-First Century.

Library of Congress Subject Headings

Banking law, Banks and banking