Why Banking Has a Future Towards a New Theory of Banking

《Why Banking Has a Future Towards a New Theory of Banking》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、November1996Isthereafutureinbanking?Towardsanewtheoryofthecommercialbank.RaghuramG.RajanNorthwesternUniversityandtheUniversityofChicagoAbstractAccordingtosome,thecommercialbank--aninstitutionthatconductsthetwinactivitiesofacceptingdepositspayableondemandandoriginating

2、loans--isanachronisticandinastateofterminaldecline.Theevidence,however,issomewhatmixed.Thispapertakesadifferentapproachtoanalyzingthefutureofbanks:Iexaminewhetherthereisaneconomicrationalefortheirexistinginthepastandwhetherthisrationalecontinuestohold.Ifirstoutlinewhy

3、thetwocorebankingactivities,oftakingindepositspayableondemandandoforiginatingnon-marketableloans,areperformedbyfinancialinstitutions.Bothactivitiesessentiallyrequireaninstitutiontocomeupwithcashatshortnotice,thatis,provideliquidity.Scaleeconomiesinprovidingliquidityth

4、enexplainwhybothactivitiesareprovidedbythesameentity--acommercialbank.Deregulationandinnovationhaveincreasedcompetition,whichhasforcedbankstoconcentrateontheessentialsofliquidityprovision.Thisiswhytheoutwardnatureoftheiractivities--thoughnottheunderlyingeconomicration

5、ale--haschanged.However,inthecourseofperformingtheirtraditionalactivities,bankshaveacquiredcompetenciesthatenablethemtoperformavarietyofotherfinancialandnon-financialactivitiesthatderegulationandinnovationhaveopeneduptothem.Thepaperconcludeswithadiscussionofwhybanksma

6、ywanttolimittheirentryintosomenewactivities.Accordingtomanyobservers,thecommercialbank--theinstitutionthatacceptsdepositspayable1ondemandandoriginatesloans--hasoutliveditsusefulnessandisinastateofterminaldecline.Commercialbankassetsasafractionofassetsinfinancialinstit

7、utionsintheUnitedStateshavefallendramatically,fromover70%aroundtheturnofthecenturytojustaround30%today.Bankshareof2corporatedebtintheUnitedStateshasdeclinedfrom19.6%in1979to14.5%in1994.Buthistorysuggestscautioninprojectingtrendstoofar.Bankloanstoindustrialfirmsfelldra

8、maticallyinthe1920sintheUnitedStatesasfirmsdirectlytappedthepublicmarkets.Proclamationsofthedemiseofcommercialbankingwereoft