A distinguished economist examines competition, regulation, and
stability in today's global banks Does too much competition in banking
hurt society? What policies can best protect and stabilize banking
without stifling it? Institutional responses to such questions have
evolved over time, from interventionist regulatory control after the
Great Depression to the liberalization policies that started in the
United States in the 1970s. The global financial crisis of
2007–2009, which originated from an oversupply of credit, once again
raised questions about excessive banking competition and what should
be done about it. Competition and Stability in Banking addresses the
critical relationships between competition, regulation, and stability,
and the implications of coordinating banking regulations with
competition policies. Xavier Vives argues that while competition is
not responsible for fragility in banking, there are trade-offs between
competition and stability. Well-designed regulations would alleviate
these trade-offs but not eliminate them, and the specificity of
competition in banking should be accounted for. Vives argues that
regulation and competition policy should be coordinated, with tighter
prudential requirements in more competitive situations, but he also
shows that supervisory and competition authorities should stand
separate from each other, each pursuing its own objective. Vives
reviews the theory and empirics of banking competition, drawing on
up-to-date analysis that incorporates the characteristics of modern
market-based banking, and he looks at regulation, competition
policies, and crisis interventions in Europe and the United States, as
well as in emerging economies. Focusing on why banking competition
policies are necessary, Competition and Stability in Banking examines
regulation's impact on the industry's efficiency and effectiveness.
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Produktdetaljer
ISBN
9781400880904
Publisert
2016
Utgiver
Vendor
Princeton University Press
Språk
Product language
Engelsk
Format
Product format
Digital bok
Forfatter