About This Book
This book of Hector Turuhpial Cariello, entitled Banking Crises and Their Causes: The Fraudulent Actions of Their Administrators and Resolution Mechanisms, written by Héctor Turuhpial Cariello, consists of four chapters.
In the first chapter, the author begins by acknowledging the constitutional status in Venezuela of the principle/mandate for regulating private economic activity. He then explains the conditions that shape the objectives of financial activity, deducing them from critical commentary on two rulings issued by the Constitutional Chamber of the Supreme Court of Justice. The final section addresses the three organizational models that banking intermediation can adopt: sectoral regulations; public sectorization, transforming the activity into a public service; or deregulation or liberalization, declaring it an activity of general interest—a formula characteristic of community law.
In CHAPTER TWO, the author describes in detail how, starting with the systemic crisis of 2007, the so-called global financial stability framework was created, comprised of the set of principles dictated by the Basel Committee and constantly updated. He then goes on to define the cyclical nature of banking crises and meticulously categorize their causes: exogenous causes, endogenous causes, and causes attributable to bank managers.
CHAPTER THREE is dedicated to systemic crises, in which the author defines systemic risk, systemic banks, and the competent authorities for addressing or preventing them. He explains in detail the characteristics of the systemic crisis that Venezuela suffered and the legislation governing financial emergencies.
In the FOURTH CHAPTER, the 4 resolution mechanisms applicable in community law are stated and explained, provided for in the Single Code and developed in the MUR or Single Supervisory Mechanism, explaining in parallel the Resolution Mechanisms contemplated in Venezuelan Law.
