Economic Analysis of Financial Regulation参考.ppt

Chapter 11 Economic Analysis of Financial Regulation Table 1 Major Financial Legislation in the United States Table 1 Major Financial Legislation in the United States (cont.) FIGURE 1 Bank Failures in the United States, 1934–2008 Source: /bank/historical/bank/index.html. Table 2 The Cost of Rescuing Banks in Several Countries 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. Chapter 12 Banking Industry: Structure and Competition FIGURE 1 Time Line of the Early History of Commercial Banking in the United States FIGURE 2 Bank Share of Total Nonfinancial Borrowing, 1960–2008 Source: Federal Reserve Flow of Funds Accounts; Federal Reserve Bulletin. Table 1 Size Distribution of Insured Commercial Banks, September 30, 2008 Table 2 Ten Largest U.S. Banks, December 30, 2008 Figure 3 Number of Insured Commercial Banks in the United States, 1934–2008 (3rd Quarter) Source: /qbp/qbpSelect.asp?menuitem=STAT. Table 3 Ten Largest Banks in the World, 2008 Source: /2008/07/25/the-top-10-banks-in-the-world-2008/. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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 2000s. 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 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 Increase in income from off-balance-sheet activities