This thesis has two goals. First, it refines our understanding of the role that the clearing banks in Britain played as providers of credit to industrial borrowers in the period between the Macmillan Committee of 1930 and the Radcliffe Committee of 1959. It then analyzes the banking system as a component of the monetary and credit structure in the economy. The conclusion reached is that industr...

We highlight the implications of combining underwriting services and lending for the choice of underwriters and for competition in the underwriting business. We show that cross-selling can increase underwriters’ incentives, and we explain three phenomena: first, that cross-selling is important for universal banks to enter the investment banking business; second, that cross-selling is particular...

I present a framework of banking in which banks’ main role is to monitor their borrowers. Within this framework I analyze the benefits of diversification and the threats of systemic risk and inter-bank competition. Diversification improves banks’ monitoring incentives. High systemic risk not only hampers banks’ monitoring incentives, but also makes diversification less effective. I also show th...

Purpose – Banks are the major suppliers of external funds for companies in China. The purpose of this paper is to examine whether Chinese banks exercise effective monitoring over borrowers in two lending decisions, including loan interest rates and loan renewals. Design/methodology/approach – Using a sample of Chinese public industrial firms from 2000 to 2005, the authors perform multivariate r...

S part of the comprehensive revision of the national income and product accounts (NIPAs) scheduled for release on December 10, 2003, a definitional change will be introduced that recognizes the implicit services of commercial banks to borrowers. This change is briefly described in the June 2003 issue of the SURVEY OF CURRENT BUSINESS, and some associated table changes are described in the Augus...

Traditional banking is built on four pillars: SME lending, access to public liquidity, deposit insurance, and prudential supervision. This vision has been shattered by repeated bailouts of shadow financial institutions. This paper puts “special depositors and borrowers” at the core of the analysis, provides a rationale for the covariation yielding the quadrilogy, and analyzes how prudential reg...

We quantify the impact of bank market power on monetary policy transmission through banks to borrowers. estimate a dynamic banking model in which affects imperfectly competitive banks' funding costs. Banks optimize pass-through these costs borrowers and depositors, while facing capital reserve regulation. find that explains much borrowers, with an effect comparable When federal funds rate falls...

This paper aims at shedding light on the influence of guarantees on the loan pricing (banking interest rates), by focusing on three different types of customers: firms, producer households and consumer households. The relevance of guarantees in lending activity is widespread acknowledged, and their role is recognized in the New Basel Capital Accord (Basel II) that foresees a specific regulation...