An Overall Perspective on Banking Regulation
UPF, Economics and Business Working Paper No. 664
27 Pages Posted: 21 May 2003
Date Written: March 10, 2003
This paper surveys the theory of banking regulation from the general perspective of regulatory theory. Starting by considering the different justifications of financial intermediation, we proceed to identify the market failures that make banking regulation necessary. We then turn to examine how the analysis of regulation compares in the domains of banking and industrial organization. Finally we analyse why a safety net for banks could be part of banking regulation and how it can be structured in an efficient way.
Keywords: Banking Regulation, survey, Financial Market imperfection
JEL Classification: G2
Suggested Citation: Suggested Citation