Howard Bodenhorn
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195147766
- eISBN:
- 9780199832910
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195147766.003.0011
- Subject:
- Economics and Finance, Economic History
Early American banking grew in accordance with overall economic growth. The one exception was the early 1830s, when a speculative wave poured over the U.S. and the banking sector grew more rapidly ...
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Early American banking grew in accordance with overall economic growth. The one exception was the early 1830s, when a speculative wave poured over the U.S. and the banking sector grew more rapidly than the aggregate economy. High credit demand drove up profits, which induced entry, induced capital investment, and increased capital leverage ratios. The speculative bubble burst in the late 1830s due to actions by the Bank of England. Banks failed in unprecedented numbers in the early 1840s. After 1843, banking and economic activity moved together. While the National Banking Acts of 1863 and 1864 rationalized the nation's banking system, they eliminated a number of the distinct regional attributes that had appeared under an earlier, more decentralized federalism.Less
Early American banking grew in accordance with overall economic growth. The one exception was the early 1830s, when a speculative wave poured over the U.S. and the banking sector grew more rapidly than the aggregate economy. High credit demand drove up profits, which induced entry, induced capital investment, and increased capital leverage ratios. The speculative bubble burst in the late 1830s due to actions by the Bank of England. Banks failed in unprecedented numbers in the early 1840s. After 1843, banking and economic activity moved together. While the National Banking Acts of 1863 and 1864 rationalized the nation's banking system, they eliminated a number of the distinct regional attributes that had appeared under an earlier, more decentralized federalism.
Jordi Canals
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780198775065
- eISBN:
- 9780191695353
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198775065.003.0003
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American ...
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The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American banking crisis was and still is the main historical experience customarily used as a reference point when establishing the limits of bank involvement in activities other than pure and simple financial intermediation. This chapter discusses the reasons for the banking crisis in the United States, and the relationship between the cause of the crisis and the universal banking system prevailing at that time. The Roosevelt administration initiated a large-scale reform of the financial system in response to the crisis. The so-called 1933 Banking Act represented a new approach to the problem of financial regulation which, for the first time, followed two distinct lines. On the one hand, there was the separation between financial intermediation or commercial banking activities and investment activities in financial assets or non-financial companies. On the other hand, there was the institution of a deposit insurance to guarantee that deposit holders would receive a certain minimum sum in the event that their bank should fail.Less
The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American banking crisis was and still is the main historical experience customarily used as a reference point when establishing the limits of bank involvement in activities other than pure and simple financial intermediation. This chapter discusses the reasons for the banking crisis in the United States, and the relationship between the cause of the crisis and the universal banking system prevailing at that time. The Roosevelt administration initiated a large-scale reform of the financial system in response to the crisis. The so-called 1933 Banking Act represented a new approach to the problem of financial regulation which, for the first time, followed two distinct lines. On the one hand, there was the separation between financial intermediation or commercial banking activities and investment activities in financial assets or non-financial companies. On the other hand, there was the institution of a deposit insurance to guarantee that deposit holders would receive a certain minimum sum in the event that their bank should fail.
Jens Hagendorff
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199694891
- eISBN:
- 9780191748820
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199694891.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter examines the trends and composition of banking risk across Europe from January 1988 to December 2010. In particular, the chapter examines whether, the growing integration and ...
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This chapter examines the trends and composition of banking risk across Europe from January 1988 to December 2010. In particular, the chapter examines whether, the growing integration and internationalization of European banks has increased their vulnerability to cross-country shocks and increased the likelihood of cross-country banking crises. While there is no evidence of a long-term trend in the average level of banking system volatility, there is a change in its composition resulting from the growing importance of International and European nonfinancial components, especially in the largest banking systems. We argue that the changing composition of banking system volatility is the effect of a long-term integration process (with a growing importance of cross-border activities) that has not been influenced by the introduction of the Euro.Less
This chapter examines the trends and composition of banking risk across Europe from January 1988 to December 2010. In particular, the chapter examines whether, the growing integration and internationalization of European banks has increased their vulnerability to cross-country shocks and increased the likelihood of cross-country banking crises. While there is no evidence of a long-term trend in the average level of banking system volatility, there is a change in its composition resulting from the growing importance of International and European nonfinancial components, especially in the largest banking systems. We argue that the changing composition of banking system volatility is the effect of a long-term integration process (with a growing importance of cross-border activities) that has not been influenced by the introduction of the Euro.
Edward Morris
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231170543
- eISBN:
- 9780231540506
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231170543.001.0001
- Subject:
- Business and Management, Business History
The 2008 financial collapse, the expansion of corporate and private wealth, the influence of money in politics—many of Wall Street's contemporary trends can be traced back to the work of fourteen ...
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The 2008 financial collapse, the expansion of corporate and private wealth, the influence of money in politics—many of Wall Street's contemporary trends can be traced back to the work of fourteen critical figures who wrote, and occasionally broke, the rules of American finance. Edward Morris plots Wall Street’s transformation from a clubby enclave of financiers to a symbol of vast economic power. His book begins with J. Pierpont Morgan, who ruled the American banking system at the turn of the twentieth century, and ends with Sandy Weill, whose collapsing Citigroup required the largest taxpayer bailout in history. In between, Wall Streeters relates the triumphs and missteps of twelve other financial visionaries. From Charles Merrill, who founded Merrill Lynch and introduced the small investor to the American stock market; to Michael Milken, the so-called junk bond king; to Jack Bogle, whose index funds redefined the mutual fund business; to Myron Scholes, who laid the groundwork for derivative securities; and to Benjamin Graham, who wrote the book on securities analysis. Anyone interested in the modern institution of American finance will devour this history of some of its most important players.Less
The 2008 financial collapse, the expansion of corporate and private wealth, the influence of money in politics—many of Wall Street's contemporary trends can be traced back to the work of fourteen critical figures who wrote, and occasionally broke, the rules of American finance. Edward Morris plots Wall Street’s transformation from a clubby enclave of financiers to a symbol of vast economic power. His book begins with J. Pierpont Morgan, who ruled the American banking system at the turn of the twentieth century, and ends with Sandy Weill, whose collapsing Citigroup required the largest taxpayer bailout in history. In between, Wall Streeters relates the triumphs and missteps of twelve other financial visionaries. From Charles Merrill, who founded Merrill Lynch and introduced the small investor to the American stock market; to Michael Milken, the so-called junk bond king; to Jack Bogle, whose index funds redefined the mutual fund business; to Myron Scholes, who laid the groundwork for derivative securities; and to Benjamin Graham, who wrote the book on securities analysis. Anyone interested in the modern institution of American finance will devour this history of some of its most important players.
Mark Mason
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780198292647
- eISBN:
- 9780191684937
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292647.003.0005
- Subject:
- Business and Management, International Business, Political Economy
The great surge of Japanese FDI in the late 1980s provoked powerful fears among many in the banking sector of the unifying European community. Japanese multinationals had mounted major challenges to ...
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The great surge of Japanese FDI in the late 1980s provoked powerful fears among many in the banking sector of the unifying European community. Japanese multinationals had mounted major challenges to EC automobile and consumer electronics manufacturers in Community markets. To explore these and related issues, this chapter examines in particular the creation of relevant portions of the Second Banking Coordination Directive (2BCD), the central piece of legislation which dealt not only with matters of internal financial integration, but also with the entry and operation of Japanese and other non-EC banks in the Community after 1992. This chapter first examines certain salient characteristics of the EC banking industry together with the development of Japanese banks in Europe evoking EC policy responses. Next, the process of crafting key provisions of the 2BCD as well as resulting outcomes and denouements is examined. Finally, this chapter compares and contrasts European and American policies towards their respective Japanese banking challenges.Less
The great surge of Japanese FDI in the late 1980s provoked powerful fears among many in the banking sector of the unifying European community. Japanese multinationals had mounted major challenges to EC automobile and consumer electronics manufacturers in Community markets. To explore these and related issues, this chapter examines in particular the creation of relevant portions of the Second Banking Coordination Directive (2BCD), the central piece of legislation which dealt not only with matters of internal financial integration, but also with the entry and operation of Japanese and other non-EC banks in the Community after 1992. This chapter first examines certain salient characteristics of the EC banking industry together with the development of Japanese banks in Europe evoking EC policy responses. Next, the process of crafting key provisions of the 2BCD as well as resulting outcomes and denouements is examined. Finally, this chapter compares and contrasts European and American policies towards their respective Japanese banking challenges.
John Bryden, Ottar Brox, and Lesley Riddoch (eds)
- Published in print:
- 2015
- Published Online:
- January 2018
- ISBN:
- 9780748696208
- eISBN:
- 9781474412506
- Item type:
- book
- Publisher:
- Edinburgh University Press
- DOI:
- 10.3366/edinburgh/9780748696208.001.0001
- Subject:
- Society and Culture, Scottish Studies
This book, which has a Preface by Scotland’s leading historian, Sir Tom Devine, is a comparative study of the economic, social and political development of Norway and Scotland, mainly since about ...
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This book, which has a Preface by Scotland’s leading historian, Sir Tom Devine, is a comparative study of the economic, social and political development of Norway and Scotland, mainly since about 1800. The authors are from Scotland, Norway, Denmark, England and Finland. It starts with an overview of the histories of the two countries, which were closely intertwined between the 8th and 17th Centuries, and the economic, social and political relationships between them. It includes specific chapters dealing with the comparative development of political institutions and democracy, agriculture and land ownership, industry, local government, money and banking, the welfare state, education, outdoor activities and recreation and religion. There are additional chapters on the impacts of the two World Wars on political relations between Scotland and Norway, on core issue in the comparison of social developments in the two countries, and on the theories that may help us to understand to diverse development paths of Norway and Scotland. The content and focus of the book is unique and original, and joins historians, economists, political scientists, anthropologists, geographers and sociologists in an important example of comparative analysis covering the long term. It is intended to provide analysis that will be helpful for debates on the future of Scotland after Brexit, whether within or outside the United Kingdom, for example on the monetary and banking questions, the welfare state, early childhood education, land and resource ownership, North Sea oil and gas, local government and decentralisation, agriculture and rural development, religion, and external relations, among others.Less
This book, which has a Preface by Scotland’s leading historian, Sir Tom Devine, is a comparative study of the economic, social and political development of Norway and Scotland, mainly since about 1800. The authors are from Scotland, Norway, Denmark, England and Finland. It starts with an overview of the histories of the two countries, which were closely intertwined between the 8th and 17th Centuries, and the economic, social and political relationships between them. It includes specific chapters dealing with the comparative development of political institutions and democracy, agriculture and land ownership, industry, local government, money and banking, the welfare state, education, outdoor activities and recreation and religion. There are additional chapters on the impacts of the two World Wars on political relations between Scotland and Norway, on core issue in the comparison of social developments in the two countries, and on the theories that may help us to understand to diverse development paths of Norway and Scotland. The content and focus of the book is unique and original, and joins historians, economists, political scientists, anthropologists, geographers and sociologists in an important example of comparative analysis covering the long term. It is intended to provide analysis that will be helpful for debates on the future of Scotland after Brexit, whether within or outside the United Kingdom, for example on the monetary and banking questions, the welfare state, early childhood education, land and resource ownership, North Sea oil and gas, local government and decentralisation, agriculture and rural development, religion, and external relations, among others.
Edward Morris
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231170543
- eISBN:
- 9780231540506
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231170543.003.0003
- Subject:
- Business and Management, Business History
The chapter describes Congressman Carter Glass’s unexpected role in passing legislation to form a central bank.
The chapter describes Congressman Carter Glass’s unexpected role in passing legislation to form a central bank.
Rachel A. Epstein
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9780198809968
- eISBN:
- 9780191847219
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198809968.001.0001
- Subject:
- Political Science, Political Economy
States and banks have traditionally maintained close ties. At various points in time, states have used banks to manage their economies and soak up government debt, while banks enjoyed regulatory ...
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States and banks have traditionally maintained close ties. At various points in time, states have used banks to manage their economies and soak up government debt, while banks enjoyed regulatory forbearance, restricted competition and implicit or explicit guarantees from their home governments. The political foundations of banks have thus been powerful and enduring, with actors on both sides of the aisle reluctant to sever relations. The central argument of this book, however, is that in the world’s largest integrated market, Europe, political ties between states and banks have been transformed. Specifically, through a combination of post-communist transition, monetary union, and economic crisis, states in Europe no longer wield preponderant influence over their banks. In the East, high levels of foreign bank ownership have disrupted politically infused bank–state ties, while in the Eurozone, European Banking Union has supra-nationalized bank governance. Banking on Markets explains why we have witnessed the radical denationalization of this politically vital sector, as well as the consequences for economic volatility and policy autonomy. Contrary to expectations, marketized bank–state ties and elevated foreign bank ownership levels mitigated volatility in Europe’s recent economic crises. But marketized bank–state ties also limit national economic policy discretion. The findings from Europe have implications for other world regions, which, to varying degrees, have also experienced intensified pressure on their traditional models of domestic political control over finance.Less
States and banks have traditionally maintained close ties. At various points in time, states have used banks to manage their economies and soak up government debt, while banks enjoyed regulatory forbearance, restricted competition and implicit or explicit guarantees from their home governments. The political foundations of banks have thus been powerful and enduring, with actors on both sides of the aisle reluctant to sever relations. The central argument of this book, however, is that in the world’s largest integrated market, Europe, political ties between states and banks have been transformed. Specifically, through a combination of post-communist transition, monetary union, and economic crisis, states in Europe no longer wield preponderant influence over their banks. In the East, high levels of foreign bank ownership have disrupted politically infused bank–state ties, while in the Eurozone, European Banking Union has supra-nationalized bank governance. Banking on Markets explains why we have witnessed the radical denationalization of this politically vital sector, as well as the consequences for economic volatility and policy autonomy. Contrary to expectations, marketized bank–state ties and elevated foreign bank ownership levels mitigated volatility in Europe’s recent economic crises. But marketized bank–state ties also limit national economic policy discretion. The findings from Europe have implications for other world regions, which, to varying degrees, have also experienced intensified pressure on their traditional models of domestic political control over finance.
Assaf Razin
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780262028592
- eISBN:
- 9780262327701
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262028592.003.0008
- Subject:
- Economics and Finance, International
To understand the origins of currency crises is best to think about the basic tri-lemma in international finance. In international finance, the tri-lemma stems from the fact that economic policy ...
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To understand the origins of currency crises is best to think about the basic tri-lemma in international finance. In international finance, the tri-lemma stems from the fact that economic policy makers would like to achieve the openness to international capital flows; use monetary policy as a tool to help stabilize inflation, output, and the financial sector in the economy; and have stable exchange rates. The chapter reviews the analytics of first-generation, second generation and third generation of currency crises model and focus on the fragility of a single currency area.Less
To understand the origins of currency crises is best to think about the basic tri-lemma in international finance. In international finance, the tri-lemma stems from the fact that economic policy makers would like to achieve the openness to international capital flows; use monetary policy as a tool to help stabilize inflation, output, and the financial sector in the economy; and have stable exchange rates. The chapter reviews the analytics of first-generation, second generation and third generation of currency crises model and focus on the fragility of a single currency area.
Costas Simitis
- Published in print:
- 2014
- Published Online:
- September 2014
- ISBN:
- 9780719095795
- eISBN:
- 9781781707005
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719095795.003.0025
- Subject:
- Political Science, European Union
The chapter discusses the intensification of the Eurozone crisis in the aftermath of the Greek election of May 2012, particularly as concerns over the health of the Spanish economy put pressure on ...
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The chapter discusses the intensification of the Eurozone crisis in the aftermath of the Greek election of May 2012, particularly as concerns over the health of the Spanish economy put pressure on the value of the Euro. The ECB warned that the very design of EMU was no longer sustainable, but the building of consensus over the reform of the Eurozone's architecture proved elusive.Less
The chapter discusses the intensification of the Eurozone crisis in the aftermath of the Greek election of May 2012, particularly as concerns over the health of the Spanish economy put pressure on the value of the Euro. The ECB warned that the very design of EMU was no longer sustainable, but the building of consensus over the reform of the Eurozone's architecture proved elusive.
Costas Simitis
- Published in print:
- 2014
- Published Online:
- September 2014
- ISBN:
- 9780719095795
- eISBN:
- 9781781707005
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719095795.003.0030
- Subject:
- Political Science, European Union
The chapter discusses the causes of the Cypriot crisis and circumstances of its bailout by the EU and the IMF. It is argued that the excesses of the Cypriot banking system had been largely ...
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The chapter discusses the causes of the Cypriot crisis and circumstances of its bailout by the EU and the IMF. It is argued that the excesses of the Cypriot banking system had been largely responsible for the implosion of the Cypriot economy. On a different level, the delays in dealing with the Cypriot crisis in a timely manner, highlighted the limitations of the Eurozone institutions to manage risk.Less
The chapter discusses the causes of the Cypriot crisis and circumstances of its bailout by the EU and the IMF. It is argued that the excesses of the Cypriot banking system had been largely responsible for the implosion of the Cypriot economy. On a different level, the delays in dealing with the Cypriot crisis in a timely manner, highlighted the limitations of the Eurozone institutions to manage risk.
Kavita Datta
- Published in print:
- 2012
- Published Online:
- January 2013
- ISBN:
- 9781847428431
- eISBN:
- 9781447307549
- Item type:
- book
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781847428431.001.0001
- Subject:
- Sociology, Social Stratification, Inequality, and Mobility
This original and topical book tells the untold stories of migrants' experiences of, and responses to, financial exclusion in London. Breaking important new ground, it offers an insight into ...
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This original and topical book tells the untold stories of migrants' experiences of, and responses to, financial exclusion in London. Breaking important new ground, it offers an insight into migrants' lives which is often overlooked, yet is increasingly vital for their broader integration into advanced financialised societies. Adopting a holistic focus, Migrants and their money investigates migrants' complex financial lives which extend far beyond remittance sending, exploring their banking, saving, credit and debt related practices. It highlights how migrants negotiate the complex financial landscape they encounter in London, and the diverse formal and informal ways in which they manage their money in the financial capital of the world. Drawing upon a rich evidence base comprising of interviews with transnational migrants from the global South and Central and Eastern Europe, this book will be of particular interest to academics, local authorities, policy makers and the financial services industry.Less
This original and topical book tells the untold stories of migrants' experiences of, and responses to, financial exclusion in London. Breaking important new ground, it offers an insight into migrants' lives which is often overlooked, yet is increasingly vital for their broader integration into advanced financialised societies. Adopting a holistic focus, Migrants and their money investigates migrants' complex financial lives which extend far beyond remittance sending, exploring their banking, saving, credit and debt related practices. It highlights how migrants negotiate the complex financial landscape they encounter in London, and the diverse formal and informal ways in which they manage their money in the financial capital of the world. Drawing upon a rich evidence base comprising of interviews with transnational migrants from the global South and Central and Eastern Europe, this book will be of particular interest to academics, local authorities, policy makers and the financial services industry.
Youssef Cassis
- Published in print:
- 2011
- Published Online:
- May 2011
- ISBN:
- 9780199600861
- eISBN:
- 9780191724930
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199600861.003.0003
- Subject:
- Business and Management, Finance, Accounting, and Banking, Business History
This chapter discusses the four major financial crises that broke out in the core industrial countries between the end of Bretton Woods in 1971 and the early 21st century: the Financial Instability ...
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This chapter discusses the four major financial crises that broke out in the core industrial countries between the end of Bretton Woods in 1971 and the early 21st century: the Financial Instability of the early 1970s and the ensuing bank failures, especially in Britain, Germany, and the United States, within the context of ‘stagflation’ and the end of fixed exchange rates; the International Debt Crisis of 1982, when the international financial system was threatened with collapse; the Japanese Banking Crisis of 1997–8, which undermined the financial system of the world's second largest economic power; and the Financial Debacle of 2007–8.Less
This chapter discusses the four major financial crises that broke out in the core industrial countries between the end of Bretton Woods in 1971 and the early 21st century: the Financial Instability of the early 1970s and the ensuing bank failures, especially in Britain, Germany, and the United States, within the context of ‘stagflation’ and the end of fixed exchange rates; the International Debt Crisis of 1982, when the international financial system was threatened with collapse; the Japanese Banking Crisis of 1997–8, which undermined the financial system of the world's second largest economic power; and the Financial Debacle of 2007–8.
B.L. Shankar and Valerian Rodrigues
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198067726
- eISBN:
- 9780199080434
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198067726.003.0008
- Subject:
- Political Science, Indian Politics
This chapter explores the relation between the Rajya Sabha vis-à-vis the Lok Sabha in India as well as the direction and extent to which this relation can be rethought today. It traces the ...
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This chapter explores the relation between the Rajya Sabha vis-à-vis the Lok Sabha in India as well as the direction and extent to which this relation can be rethought today. It traces the development of the Rajya Sabha and its attempt to carve out a specific domain for itself. The Indian Parliament has gone through three Joint Sittings, the proceedings of which are discussed to assess the impact of the Houses on the quality and nature of the debate. The Lok Sabha has been the pulse of the vitality of Indian democracy and has refused to acknowledge the Rajya Sabha as its intellectual and cultural superior. This chapter also examines the quality of debates in the Rajya Sabha compared with the Lok Sabha, focusing on one issue: the Godhra incident, which shook the foundational principles of Indian polity and called into question the nation's policy on minorities.Less
This chapter explores the relation between the Rajya Sabha vis-à-vis the Lok Sabha in India as well as the direction and extent to which this relation can be rethought today. It traces the development of the Rajya Sabha and its attempt to carve out a specific domain for itself. The Indian Parliament has gone through three Joint Sittings, the proceedings of which are discussed to assess the impact of the Houses on the quality and nature of the debate. The Lok Sabha has been the pulse of the vitality of Indian democracy and has refused to acknowledge the Rajya Sabha as its intellectual and cultural superior. This chapter also examines the quality of debates in the Rajya Sabha compared with the Lok Sabha, focusing on one issue: the Godhra incident, which shook the foundational principles of Indian polity and called into question the nation's policy on minorities.
TONY PORTER
- Published in print:
- 2012
- Published Online:
- May 2013
- ISBN:
- 9780199754656
- eISBN:
- 9780199979462
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199754656.003.0013
- Subject:
- Economics and Finance, Financial Economics, International
As finance has become more globalized and global financial crises have become more frequent and severe, a set of international regulatory regimes has been established. These have generally taken the ...
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As finance has become more globalized and global financial crises have become more frequent and severe, a set of international regulatory regimes has been established. These have generally taken the form of relatively informal networks of regulators focusing on particular aspects of the financial system. Over time these regulatory regimes have become more complex. States, operating first through the G7 and then the G20, began to oversee and direct these regimes more actively and politically. The regimes' engagement with internationally active business actors has increased, leading some to see them as having been captured by the industry. Initially they tended to be exclusive, but over time, and especially after the crisis of 2008, the number of countries involved has expanded. The degree and sources of their effectiveness continue to be debated.Less
As finance has become more globalized and global financial crises have become more frequent and severe, a set of international regulatory regimes has been established. These have generally taken the form of relatively informal networks of regulators focusing on particular aspects of the financial system. Over time these regulatory regimes have become more complex. States, operating first through the G7 and then the G20, began to oversee and direct these regimes more actively and politically. The regimes' engagement with internationally active business actors has increased, leading some to see them as having been captured by the industry. Initially they tended to be exclusive, but over time, and especially after the crisis of 2008, the number of countries involved has expanded. The degree and sources of their effectiveness continue to be debated.
Simone Polillo
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780804785099
- eISBN:
- 9780804785556
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804785099.003.0003
- Subject:
- Sociology, Economic Sociology
This chapter highlights the social processes that invest money, in the form of specific, differentiated financial instruments, with the power to signal membership. It conceptualizes banks as ...
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This chapter highlights the social processes that invest money, in the form of specific, differentiated financial instruments, with the power to signal membership. It conceptualizes banks as organizations operating in a “financial field,” a social arena in which they recognize and monitor the activities of one another and circulate collective identities with which they give meaning to their financial operations. By understanding finance as a field, it also brings Joseph Schumpeter’s important distinction between conservative and wildcat bankers, which is briefly compared to other sociological approaches to money and banking. The chapter concludes with a discussion of the external forces that affect financial fields. Specifically, through a focus on democratic institutions, it delineates some of the pressures and constraints, as well as outlets and opportunities, that different kinds of bankers can exploit in their pursuit of conservative, or wildcat banking strategies.Less
This chapter highlights the social processes that invest money, in the form of specific, differentiated financial instruments, with the power to signal membership. It conceptualizes banks as organizations operating in a “financial field,” a social arena in which they recognize and monitor the activities of one another and circulate collective identities with which they give meaning to their financial operations. By understanding finance as a field, it also brings Joseph Schumpeter’s important distinction between conservative and wildcat bankers, which is briefly compared to other sociological approaches to money and banking. The chapter concludes with a discussion of the external forces that affect financial fields. Specifically, through a focus on democratic institutions, it delineates some of the pressures and constraints, as well as outlets and opportunities, that different kinds of bankers can exploit in their pursuit of conservative, or wildcat banking strategies.
Willem H. Buiter
- Published in print:
- 2015
- Published Online:
- January 2016
- ISBN:
- 9780197265864
- eISBN:
- 9780191772016
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197265864.003.0010
- Subject:
- History, World Early Modern History
The economic and political importance of central banks has grown markedly in advanced economies since the start of the Great Financial Crisis in 2007. In this article it is argued that the ...
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The economic and political importance of central banks has grown markedly in advanced economies since the start of the Great Financial Crisis in 2007. In this article it is argued that the preservation of the central bank’s legitimacy and independence requires that a clear line be drawn between the central bank’s provision of liquidity and the Treasury’s solvency support for systemically important financial institutions. Central banks should not be materially involved in regulation and supervision of the financial sector. All activities of the central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must increase their accountability by increasing the transparency of their lender-of-last-resort and market-maker-of-last resort activities. Central banks ought not to engage in quasi-fiscal activities. Finally, central banks should stick to their knitting and central bankers should not become participants in public debates and deeply political arguments about matters beyond their mandate and competence, including fiscal policy and structural reform.Less
The economic and political importance of central banks has grown markedly in advanced economies since the start of the Great Financial Crisis in 2007. In this article it is argued that the preservation of the central bank’s legitimacy and independence requires that a clear line be drawn between the central bank’s provision of liquidity and the Treasury’s solvency support for systemically important financial institutions. Central banks should not be materially involved in regulation and supervision of the financial sector. All activities of the central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must increase their accountability by increasing the transparency of their lender-of-last-resort and market-maker-of-last resort activities. Central banks ought not to engage in quasi-fiscal activities. Finally, central banks should stick to their knitting and central bankers should not become participants in public debates and deeply political arguments about matters beyond their mandate and competence, including fiscal policy and structural reform.
David Howarth and Lucia Quaglia
- Published in print:
- 2016
- Published Online:
- October 2016
- ISBN:
- 9780198727927
- eISBN:
- 9780191794216
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198727927.001.0001
- Subject:
- Economics and Finance, Financial Economics, Economic Systems
The establishment of Banking Union represents a major development in European economic governance and European integration history more generally. Banking Union is also significant because not all ...
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The establishment of Banking Union represents a major development in European economic governance and European integration history more generally. Banking Union is also significant because not all European Union (EU) member states have joined it, which has increased the trend towards differentiated integration in the EU, posing a major challenge to the EU as a whole and to the opt-out countries. This book is informed by two main empirical questions. Why was Banking Union—presented by proponents as a crucial move to ‘complete’ Economic and Monetary Union (EMU)—proposed only in 2012, over twenty years after the adoption of the Maastricht Treaty? Why has a certain design for Banking Union been agreed and some elements of this design prioritized over others? A two-step explanation is articulated in this book. First, it explains why euro area member state governments moved to consider Banking Union by building on the concept of the financial trilemma, and examining the implications of the single currency for euro area members and non-euro area members. Second, it explains the design of Banking Union by examining the preferences of member state governments on the core components of Banking Union concerning supervision, resolution and deposit guarantee and developing a comparative political economy analysis focused on the configuration of national banking systems and concerns related to the moral hazard facing both banks and sovereigns.Less
The establishment of Banking Union represents a major development in European economic governance and European integration history more generally. Banking Union is also significant because not all European Union (EU) member states have joined it, which has increased the trend towards differentiated integration in the EU, posing a major challenge to the EU as a whole and to the opt-out countries. This book is informed by two main empirical questions. Why was Banking Union—presented by proponents as a crucial move to ‘complete’ Economic and Monetary Union (EMU)—proposed only in 2012, over twenty years after the adoption of the Maastricht Treaty? Why has a certain design for Banking Union been agreed and some elements of this design prioritized over others? A two-step explanation is articulated in this book. First, it explains why euro area member state governments moved to consider Banking Union by building on the concept of the financial trilemma, and examining the implications of the single currency for euro area members and non-euro area members. Second, it explains the design of Banking Union by examining the preferences of member state governments on the core components of Banking Union concerning supervision, resolution and deposit guarantee and developing a comparative political economy analysis focused on the configuration of national banking systems and concerns related to the moral hazard facing both banks and sovereigns.
Danny Busch, Emilios Avgouleas, and Guido Ferrarini (eds)
- Published in print:
- 2018
- Published Online:
- July 2018
- ISBN:
- 9780198813392
- eISBN:
- 9780191851582
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198813392.001.0001
- Subject:
- Law, Company and Commercial Law, EU Law
This book analyses the legal and economic implications of the European Commission's plans to form a Capital Markets Union (CMU) in Europe, which will have a major impact on financial markets and ...
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This book analyses the legal and economic implications of the European Commission's plans to form a Capital Markets Union (CMU) in Europe, which will have a major impact on financial markets and institutions both in the region and beyond. A detailed introductory chapter provides a broad overview of the various aspects and challenges of the CMU proposals, whilst thematically grouped chapters cover the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, (vii) facilitating cross-border investing, and (viii) comparative aspects of capital market integration. The book provides high-quality analysis of the legal and economic issues in a practical context.Less
This book analyses the legal and economic implications of the European Commission's plans to form a Capital Markets Union (CMU) in Europe, which will have a major impact on financial markets and institutions both in the region and beyond. A detailed introductory chapter provides a broad overview of the various aspects and challenges of the CMU proposals, whilst thematically grouped chapters cover the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, (vii) facilitating cross-border investing, and (viii) comparative aspects of capital market integration. The book provides high-quality analysis of the legal and economic issues in a practical context.
Menelaos Markakis
- Published in print:
- 2020
- Published Online:
- May 2020
- ISBN:
- 9780198845263
- eISBN:
- 9780191880544
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198845263.001.0001
- Subject:
- Law, EU Law
This book looks at accountability in the field of Economic and Monetary Union, including the Banking Union. It looks at the emergence of a new constitutional and governance architecture in the ...
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This book looks at accountability in the field of Economic and Monetary Union, including the Banking Union. It looks at the emergence of a new constitutional and governance architecture in the Eurozone, following the measures that were adopted in response to the crisis. It shows how the rules and institutions that were put in place in response to the financial and public debt crisis affect not only the economies of the Member States but also the lives of European citizens. It makes the case for instilling more democratic legitimacy into the Economic and Monetary Union and examines the impact of the new EU economic governance framework on the horizontal and vertical distribution of power in the EU and the Member States. The key question is: what is the appropriate level, type, and degree of accountability and transparency that should be involved in the development of the EU’s governance structures in the areas of fiscal/economic governance and the Banking Union? The book evaluates the powers conferred on the European and national parliaments in the fields of economic governance, monetary policy, and banking supervision/resolution, as well as the European Parliament’s input into the crisis-induced measures. It further looks at access to EU courts, the available remedies, and the role of the EU and national courts in reviewing economic and monetary policy measures. Finally, it sets out the author’s own proposals regarding the reforms needed to strengthen the Eurozone, as well as transparency, accountability, and—more broadly—legitimacy in the Economic and Monetary Union.Less
This book looks at accountability in the field of Economic and Monetary Union, including the Banking Union. It looks at the emergence of a new constitutional and governance architecture in the Eurozone, following the measures that were adopted in response to the crisis. It shows how the rules and institutions that were put in place in response to the financial and public debt crisis affect not only the economies of the Member States but also the lives of European citizens. It makes the case for instilling more democratic legitimacy into the Economic and Monetary Union and examines the impact of the new EU economic governance framework on the horizontal and vertical distribution of power in the EU and the Member States. The key question is: what is the appropriate level, type, and degree of accountability and transparency that should be involved in the development of the EU’s governance structures in the areas of fiscal/economic governance and the Banking Union? The book evaluates the powers conferred on the European and national parliaments in the fields of economic governance, monetary policy, and banking supervision/resolution, as well as the European Parliament’s input into the crisis-induced measures. It further looks at access to EU courts, the available remedies, and the role of the EU and national courts in reviewing economic and monetary policy measures. Finally, it sets out the author’s own proposals regarding the reforms needed to strengthen the Eurozone, as well as transparency, accountability, and—more broadly—legitimacy in the Economic and Monetary Union.
