Hardback
The Economics of Banking
Banks have a special position in the financial system. Their exclusive link to the central bank puts them at the top of the financial system and enables banks to offer liquidity to the wider economy. They also provide loans and payment services to firms and households. This multifaceted nature of banking makes the economics of banking exciting. Together with an original introduction by the editor, this collection assembles the best ‘banking’ papers on all these dimensions and will be invaluable for all banking scholars and practitioners.
More Information
Contributors
Contents
More Information
Banks have a special position in the financial system. Their exclusive link to the central bank puts them at the top of the financial system and enables banks to offer liquidity to the wider economy. They also provide loans and payment services to firms and households. This multifaceted nature of banking makes the economics of banking exciting. Together with an original introduction by the editor, this collection assembles the best ‘banking’ papers on all these dimensions and will be invaluable for all banking scholars and practitioners.
Contributors
39 articles, dating from 1971 to 2020
Contributors include: F. Allen, T. Beck, A. Berger, A. Boot, D. Diamond, C. Goodhart, R. Rajan, J-C. Rochet, H. Song Shin, J. Tirole
Contributors include: F. Allen, T. Beck, A. Berger, A. Boot, D. Diamond, C. Goodhart, R. Rajan, J-C. Rochet, H. Song Shin, J. Tirole
Contents
Contents:
Introduction Dirk Schoenmaker
PART I THEORY OF BANKING
1. Michael A. Klein (1971), ‘A Theory of the Banking Firm’, Journal of Money, Credit and Banking, 3 (2) (Part 9), May, 205–18
2. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance and Liquidity’, Journal of Political Economy, 91 (3), June, 401–19
3. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’, Journal of Finance, 53 (4), August, 1245–84
4. Charles W. Calomiris and Charles M. Kahn (1991), ‘The Role of Demandable Debt in Structuring Optimal Banking Arrangements’, American Economic Review, 81 (3), June, 497–513
5. Douglas W. Diamond (1984), ‘Financial Intermediation and Delegated Monitoring’, Review of Economic Studies, 51 (3), July, 393–414
6. Joseph E. Stiglitz and Andrew Weiss (1981), ‘Credit Rationing in Markets with Imperfect Information’, American Economic Review, 71 (3), June, 393–410
7. Anil K. Kashyap, Raghuram Rajan and Jeremy C. Stein (2002), ‘Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit-Taking’, Journal of Finance, 57 (1), February, 33–73
PART II STRUCTURE AND EFFICIENCY
8. Allen N. Berger and David B. Humphrey (1997), ‘Efficiency of Financial Institutions: International Survey and Directions for Future Research’, European Journal of Operational Research, 98 (2), April, 175–212
9. Arnoud W. A. Boot (2017), ‘The Future of Banking: From Scale & Scope Economies to Fintech’, European Economy – Banks, Regulation and The Real Sector, 2, 77–95
10. Wolf Wagner (2010), ‘Diversification at Financial Institutions and Systemic Crises’, Journal of Financial Intermediation, 19 (3), July, 373–86
11. Franklin Allen and Douglas Gale (2004), ‘Competition and Financial Stability’, Journal of Money, Credit and Banking, 36 (3) (Part 2), June, 453–80
12. Sam Langfield and Marco Pagano (2016), ‘Bank bias in Europe: Effects on Systemic Risk and Growth’, Economic Policy, 31 (85), January, 51–106
PART III BANKING SERVICES
13. Mitchell A. Petersen and Raghuram G. Rajan (1994), ‘The Benefits of Lending Relationships: Evidence from Small Business Data’, Journal of Finance, 49 (1), March, 3–37
14. Allen N. Berger and Gregory F. Udell (2002), ‘Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure’, Economic Journal, 112 (477), February, F32–53
15. Òscar Jordà, Moritz Schularick and Alan M. Taylor (2016), ‘The Great Mortgaging: Housing Finance, Crises and Business Cycles’, Economic Policy, 31 (85), January, 107–52
16. Arnoud W. A. Boot and Lev Ratnovski (2016), ‘Banking and Trading’, Review of Finance, 20 (6), October, 2219–46
17. Charles Goodhart and Dirk Schoenmaker (2016), ‘The Global Investment Banks are now all Becoming American: Does that Matter for Europeans?’, Journal of Financial Regulation, 2 (2), August, 168–81
18. Allen Goss and Gordon S. Roberts (2011), ‘The Impact of Corporate Social Responsibility on the Cost of Bank Loans’, Journal of Banking and Finance, 35 (7), July, 1794–1810
19. Thorsten Beck, Asli Demirgüç-Kunt and Maria Soledad Martinez Peria (2008), ‘Banking Services for Everyone? Barriers to Bank Access and Use around the World’, World Bank Economic Review, 22 (3), November, 397–430
PART IV INTERNATIONAL BANKING
20. Robert Grosse and Lawrence G. Goldberg (1991), ‘Foreign Bank Activity in the United States: An Analysis by Country of Origin’, Journal of Banking and Finance, 15 (6), December, 1093–112
21. Nicola Cetorelli and Linda S. Goldberg (2012), ‘Banking Globalization and Monetary Transmission’, Journal of Finance, 67 (5), October, 1811–43
22. Dirk Schoenmaker (2011), ‘The Financial Trilemma’, Economics Letters, 111, 57–9
23. Stijn Claessens and Neeltje Van Horen (2014), ‘Foreign Banks: Trends and Impact’, Journal of Money, Credit and Banking, 46 (S1), February, 295–326
24. Ralph De Haas and Iman Van Lelyveld (2014), ‘Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?’, Journal of Money, Credit and Banking, 46 (S1), February, 333–64
25. Eugenio Cerutti, Giovanni Dell’Ariccia and Maria Soledad Martinez Peria (2007), ‘How Banks Go Abroad: Branches or Subsidiaries’, Journal of Banking and Finance, 31 (6), June, 1669–92
26. Eugenio Cerutti and Christina Schmieder (2014), ‘Ring Fencing and Consolidated Banks’ Stress Tests’, Journal of Financial Stability, 11, April, 1–12
27. Dirk Schoenmaker (2015), ‘The New Banking Union Landscape in Europe: Consolidation Ahead?’, Journal of Financial Perspectives, 3 (2), 189–201
PART V BANKING SUPERVISION
28. David Miles, Jing Yang and Gilberto Marcheggiano (2013), ‘Optimal Bank Capital’, Economic Journal, 123 (567), March, 1–37
29. Enrico Perotti and Javier Suarez (2011), ‘A Pigovian Approach to Liquidity Regulation’, International Journal of Central Banking, 7 (4), 3–41
30. Dirk Schoenmaker and Peter Wierts (2015), ‘Regulating The Financial Cycle: An Integrated Approach with a Leverage Ratio’, Economics Letters, 136, November, 70–2
31. Raj Aggarwal and Kevin T. Jacques (2001), ‘The Impact of FDICIA and Prompt Corrective Action on Bank Capital and Risk: Estimates Using a Simultaneous Equations Model’, Journal of Banking and Finance, 25 (6), June, 1139–60
32. Jean-Charles Rochet (2003), ‘Why Are There so Many Banking Crises?’, CESifo Economic Studies, 49 (2), 141–55
PART VI FINANCIAL STABILITY
33. Ben S. Bernanke (1983), ‘Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression’, American Economic Review, 73 (3), June, 257–76
34. C. A. E. Goodhart (1987), ‘Why Do Banks Need a Central Bank?’ Oxford Economic Papers, 39 (1), March, 75–89
35. Tobias Adrian and Hyun Song Shin (2010), ‘Liquidity and Leverage’, Journal of Financial Intermediation, 19 (3), July, 418–37
36. Andrei Shleifer and Robert Vishny (2011), ‘ Fire Sales in Finance and Macroeconomics’, Journal of Economic Perspectives, 25 (1), Winter, 29–48
37. Luc Laeven and Fabián Valencia (2013), ‘The Real Effects of Financial Sector Interventions During Crises’, Journal of Money, Credit and Banking, 45 (1), February, 147–77
38. Emilios Avgouleas, Charles Goodhart and Dirk Schoenmaker (2013), ‘Bank Resolution Plans as a Catalyst for Global Financial Reform’, Journal of Financial Stability, 9 (2), June, 210–18
Index
Introduction Dirk Schoenmaker
PART I THEORY OF BANKING
1. Michael A. Klein (1971), ‘A Theory of the Banking Firm’, Journal of Money, Credit and Banking, 3 (2) (Part 9), May, 205–18
2. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance and Liquidity’, Journal of Political Economy, 91 (3), June, 401–19
3. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’, Journal of Finance, 53 (4), August, 1245–84
4. Charles W. Calomiris and Charles M. Kahn (1991), ‘The Role of Demandable Debt in Structuring Optimal Banking Arrangements’, American Economic Review, 81 (3), June, 497–513
5. Douglas W. Diamond (1984), ‘Financial Intermediation and Delegated Monitoring’, Review of Economic Studies, 51 (3), July, 393–414
6. Joseph E. Stiglitz and Andrew Weiss (1981), ‘Credit Rationing in Markets with Imperfect Information’, American Economic Review, 71 (3), June, 393–410
7. Anil K. Kashyap, Raghuram Rajan and Jeremy C. Stein (2002), ‘Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit-Taking’, Journal of Finance, 57 (1), February, 33–73
PART II STRUCTURE AND EFFICIENCY
8. Allen N. Berger and David B. Humphrey (1997), ‘Efficiency of Financial Institutions: International Survey and Directions for Future Research’, European Journal of Operational Research, 98 (2), April, 175–212
9. Arnoud W. A. Boot (2017), ‘The Future of Banking: From Scale & Scope Economies to Fintech’, European Economy – Banks, Regulation and The Real Sector, 2, 77–95
10. Wolf Wagner (2010), ‘Diversification at Financial Institutions and Systemic Crises’, Journal of Financial Intermediation, 19 (3), July, 373–86
11. Franklin Allen and Douglas Gale (2004), ‘Competition and Financial Stability’, Journal of Money, Credit and Banking, 36 (3) (Part 2), June, 453–80
12. Sam Langfield and Marco Pagano (2016), ‘Bank bias in Europe: Effects on Systemic Risk and Growth’, Economic Policy, 31 (85), January, 51–106
PART III BANKING SERVICES
13. Mitchell A. Petersen and Raghuram G. Rajan (1994), ‘The Benefits of Lending Relationships: Evidence from Small Business Data’, Journal of Finance, 49 (1), March, 3–37
14. Allen N. Berger and Gregory F. Udell (2002), ‘Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure’, Economic Journal, 112 (477), February, F32–53
15. Òscar Jordà, Moritz Schularick and Alan M. Taylor (2016), ‘The Great Mortgaging: Housing Finance, Crises and Business Cycles’, Economic Policy, 31 (85), January, 107–52
16. Arnoud W. A. Boot and Lev Ratnovski (2016), ‘Banking and Trading’, Review of Finance, 20 (6), October, 2219–46
17. Charles Goodhart and Dirk Schoenmaker (2016), ‘The Global Investment Banks are now all Becoming American: Does that Matter for Europeans?’, Journal of Financial Regulation, 2 (2), August, 168–81
18. Allen Goss and Gordon S. Roberts (2011), ‘The Impact of Corporate Social Responsibility on the Cost of Bank Loans’, Journal of Banking and Finance, 35 (7), July, 1794–1810
19. Thorsten Beck, Asli Demirgüç-Kunt and Maria Soledad Martinez Peria (2008), ‘Banking Services for Everyone? Barriers to Bank Access and Use around the World’, World Bank Economic Review, 22 (3), November, 397–430
PART IV INTERNATIONAL BANKING
20. Robert Grosse and Lawrence G. Goldberg (1991), ‘Foreign Bank Activity in the United States: An Analysis by Country of Origin’, Journal of Banking and Finance, 15 (6), December, 1093–112
21. Nicola Cetorelli and Linda S. Goldberg (2012), ‘Banking Globalization and Monetary Transmission’, Journal of Finance, 67 (5), October, 1811–43
22. Dirk Schoenmaker (2011), ‘The Financial Trilemma’, Economics Letters, 111, 57–9
23. Stijn Claessens and Neeltje Van Horen (2014), ‘Foreign Banks: Trends and Impact’, Journal of Money, Credit and Banking, 46 (S1), February, 295–326
24. Ralph De Haas and Iman Van Lelyveld (2014), ‘Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?’, Journal of Money, Credit and Banking, 46 (S1), February, 333–64
25. Eugenio Cerutti, Giovanni Dell’Ariccia and Maria Soledad Martinez Peria (2007), ‘How Banks Go Abroad: Branches or Subsidiaries’, Journal of Banking and Finance, 31 (6), June, 1669–92
26. Eugenio Cerutti and Christina Schmieder (2014), ‘Ring Fencing and Consolidated Banks’ Stress Tests’, Journal of Financial Stability, 11, April, 1–12
27. Dirk Schoenmaker (2015), ‘The New Banking Union Landscape in Europe: Consolidation Ahead?’, Journal of Financial Perspectives, 3 (2), 189–201
PART V BANKING SUPERVISION
28. David Miles, Jing Yang and Gilberto Marcheggiano (2013), ‘Optimal Bank Capital’, Economic Journal, 123 (567), March, 1–37
29. Enrico Perotti and Javier Suarez (2011), ‘A Pigovian Approach to Liquidity Regulation’, International Journal of Central Banking, 7 (4), 3–41
30. Dirk Schoenmaker and Peter Wierts (2015), ‘Regulating The Financial Cycle: An Integrated Approach with a Leverage Ratio’, Economics Letters, 136, November, 70–2
31. Raj Aggarwal and Kevin T. Jacques (2001), ‘The Impact of FDICIA and Prompt Corrective Action on Bank Capital and Risk: Estimates Using a Simultaneous Equations Model’, Journal of Banking and Finance, 25 (6), June, 1139–60
32. Jean-Charles Rochet (2003), ‘Why Are There so Many Banking Crises?’, CESifo Economic Studies, 49 (2), 141–55
PART VI FINANCIAL STABILITY
33. Ben S. Bernanke (1983), ‘Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression’, American Economic Review, 73 (3), June, 257–76
34. C. A. E. Goodhart (1987), ‘Why Do Banks Need a Central Bank?’ Oxford Economic Papers, 39 (1), March, 75–89
35. Tobias Adrian and Hyun Song Shin (2010), ‘Liquidity and Leverage’, Journal of Financial Intermediation, 19 (3), July, 418–37
36. Andrei Shleifer and Robert Vishny (2011), ‘ Fire Sales in Finance and Macroeconomics’, Journal of Economic Perspectives, 25 (1), Winter, 29–48
37. Luc Laeven and Fabián Valencia (2013), ‘The Real Effects of Financial Sector Interventions During Crises’, Journal of Money, Credit and Banking, 45 (1), February, 147–77
38. Emilios Avgouleas, Charles Goodhart and Dirk Schoenmaker (2013), ‘Bank Resolution Plans as a Catalyst for Global Financial Reform’, Journal of Financial Stability, 9 (2), June, 210–18
Index
