economicanalysisoffinancialregulation(编辑修改稿)

economicanalysisoffinancialregulation(编辑修改稿)内容摘要：

of creditrating agencies – Restrict conflicts of interest • Additional regulation of derivatives • The danger of overregulation. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1123 FIGURE 2 Banking Crises Throughout the World Since 1970 Source: Gerard Caprio and Daniela Klingebiel, “Episodes of Systemic and Borderline Financial Crises” mimeo., World Bank, October 1999. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. Chapter 12 Banking Industry: Structure and Competition Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1125 FIGURE 1 Time Line of the Early History of Commercial Banking in the United States Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1126 Historical Development of the Banking System • Bank of North America chartered in 1782 • Controversy over the chartering of banks. • National Bank Act of 1863 creates a new banking system of federally chartered banks – Office of the Comptroller of the Currency – Dual banking system • Federal Reserve System is created in 1913. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1127 Primary Supervisory Responsibility of Bank Regulatory Agencies • Federal Reserve and state banking authorities: state banks that are members of the Federal Reserve System. • Fed also regulates bank holding panies. • FDIC: insured state banks that are not Fed members. • State banking authorities: state banks without FDIC insurance. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1128 Financial Innovation and the Growth of the “Shadow Banking System” • Financial innovation is driven by the desire to earn profits • A change in the financial environment will stimulate a search by financial institutions for innovations that are likely to be profitable – Financial engineering Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1129 Responses to Changes in Demand Conditions: Interest Rate Volatility • Adjustablerate mortgages – Flexible interest rates keep profits high when rates rise – Lower initial interest rates make them attractive to home buyers • Financial Derivatives – Ability to hedge interest rate risk – Payoffs are linked to previously issued (. derived from) securities. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1130 Responses to Changes in Supply Conditions: Information Technology • Bank credit and debit cards – Improved puter technology lowers transaction costs • Electronic banking – ATM, home banking, ABM and virtual banking • Junk bonds • Commercial paper market Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1131 Responses to Changes in Supply Conditions: Information Technology • Securitization – To transform otherwise illiquid financial assets into marketable capital market securities. – Securitization played an especially prominent role in the development of the subprime mortgage market in the mid 2020s. Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1132 Avoidance of Regulations: Loophole Mining • Reserve requirements act as a tax on deposits • Restrictions on interest paid on deposits led to disintermediation • Money market mutual funds • Sweep accounts Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 1133 Financial Innovation and the Decline of Traditional Banking • As a source of funds for borrowers, market share has fallen • Commercial banks‟ share of total financial intermediary assets has fallen • No decline in overall profitability • In。