The Oxford Handbook of Banking

Description

(p. vi) (p. vii) Preface (p. vi) (p. vii) Preface Edited by Allen N. Berger, Philip Molyneux, and John O.S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson (p. vi) (p. vii) Preface (p. xv) List of Figures (p. xv) List of Figures Edited by Allen N. Berger, Philip Molyneux, and John O.S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson (p. xv) List of Figures (p. xv) List of Figures (p. xix) List of Tables (p. xix) List of Tables Edited by Allen N. Berger, Philip Molyneux, and John O.S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson (p. xix) List of Tables (p. xix) List of Tables (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations Edited by Allen N. Berger, Philip Molyneux, and John O.S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxii) (p. xxiii) List of Abbreviations (p. xxxi) List of Contributors (p. xxxi) List of Contributors The Editors Edited by Allen N. Berger, Philip Molyneux, and John O.S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson (p. xxxi) List of Contributors Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors (p. xxxi) List of Contributors Banking: A Decade on from the Global Financial Crisis Abstract and Keywords 1.1 Introduction Allen N. Berger, Philip Molyneux, and John O. S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking: A Decade on from the Global Financial Crisis 1.2 Banking: A Decade After The Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis 1.3 Emerging Research Themes 1.3.1 Real Effects Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis (p. 8) 1.3.2 Capital, Liquidity, and Tax Regulation Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis 1.3.3 Systemic Risk (p. 12) 1.3.4 Monetary Policy Banking: A Decade on from the Global Financial Crisis 1.3.5 FinTech Banking: A Decade on from the Global Financial Crisis 1.3.6 Corporate Governance and Culture Banking: A Decade on from the Global Financial Crisis 1.3.7 Consumer Protection Banking: A Decade on from the Global Financial Crisis 1.3.8 Financial Inclusion 1.4 Book Structure and Chapter Summaries 1.4.1 The Theory of Banking Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis 1.4.2 Activities and Performance Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis (p. 21) 1.4.3 Regulatory and Policy Perspectives Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis (p. 24) 1.4.4 Macroeconomic Perspectives Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis 1.4.5 Banking Systems Around the World Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis References Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis Notes: Banking: A Decade on from the Global Financial Crisis Banking: A Decade on from the Global Financial Crisis The Roles of Banks in Financial Systems Abstract and Keywords 2.1 Introduction Franklin Allen, Elena Carletti, and Xian Gu Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems 2.2 Delegated Monitoring and Banks The Roles of Banks in Financial Systems 2.3 The Risk-Sharing Role of Banks The Roles of Banks in Financial Systems 2.4 Banking Crises The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems (p. 52) 2.5 Banks and Growth The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems 2.6 The Corporate Governance Role of Banks 2.7 Relationship Banking The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems 2.8 Concluding Remarks References The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems The Roles of Banks in Financial Systems Notes: The Roles of Banks in Financial Systems Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Abstract and Keywords 3.1 Introduction Arnoud W. A. Boot and Anjan V. Thakor Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.2 Understanding Banks as Information-Processing Intermediaries 3.2.1 The Economic Role of Banks Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.2.2 Intermediation and Competition Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.3 Bank Lending, Securitization, and Capital Market Funding Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation (p. 74) 3.4 Banks, Equity, and Private Equity Firms Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.5 Role of Credit Rating Agencies Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.6 Regulation and the Second Raison D’être for Banks: Liquidity Creation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.6.1 Fragile Banks as Liquidity Providers Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.6.2 Regulatory Implications Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.6.3 Reform Suggestions Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation 3.7 Conclusions Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation References Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Notes: Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Commercial Banking and Shadow Banking: The Accelerating Integration of Banks and Markets and its Implications for Regulation Corporate Complexity and Systemic Risk: A Progress Report Abstract and Keywords 4.1 Introduction Jacopo Carmassi and Richard J. Herring Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report 4.2 Why the Complex, Opaque, International Corporate Structure of G-Sibs Jeopardizes Systemic Stability Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report 4.3 Corporate Complexity of G-Sibs: An Update 10 Years After the Crisis Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report 4.4 What Drives the Corporate Complexity of G-Sibs? Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report 4.5 Policies to Enhance the Resolvability of G-Sibs Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report 4.6 Conclusions Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report References Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Notes: Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Complexity and Systemic Risk: A Progress Report Corporate Governance and Culture in Banking Abstract and Keywords 5.1 Introduction Jens Hagendorff Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking (p. 134) 5.2 Why Banks are Different and the Implications for Bank Governance Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking 5.3 Compensation in Banking 5.3.1 Cash and Bonus Compensation Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking 5.3.2 Equity-based Compensation Corporate Governance and Culture in Banking 5.3.3 Debt-based Compensation Corporate Governance and Culture in Banking (p. 141) 5.4 The Board of Directors and Shareholder-Oriented Governance Corporate Governance and Culture in Banking 5.5 Board Diversity: Does it Matter who Runs Banks? Corporate Governance and Culture in Banking 5.5.1 Is There a Case for Board Diversity? Corporate Governance and Culture in Banking 5.5.2 Empirical Evidence on Board Diversity in Banking Corporate Governance and Culture in Banking 5.6 Culture in Banks Corporate Governance and Culture in Banking 5.6.1 Institutional Culture Corporate Governance and Culture in Banking 5.6.2 Cultural Values of Senior Managers Corporate Governance and Culture in Banking 5.7 Policy Implications and Conclusions Corporate Governance and Culture in Banking References Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Corporate Governance and Culture in Banking Private Information and Risk Management in Banking Abstract and Keywords 6.1 Introduction Linda Allen and Anthony Saunders Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking 6.2 Risk Measurement Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking 6.3 Risk Management Private Information and Risk Management in Banking 6.3.1 Financial Futures and Forwards Private Information and Risk Management in Banking 6.3.2 Financial Options Private Information and Risk Management in Banking 6.3.3 Swaps Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking 6.4 Private Information Within Large Complex Banking Organizations Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking (p. 173) 6.5 Why Do We Care About Risk In The Banking Sector? Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking References Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Notes: Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Private Information and Risk Management in Banking Creation and Regulation of Bank Liquidity Abstract and Keywords 7.1 Introduction Christa H. S. Bouwman Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity 7.2 Banks as Liquidity Creators 7.2.1 Theories Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity 7.2.2 Empirical Evidence Creation and Regulation of Bank Liquidity 7.2.3 The Need for Regulation Creation and Regulation of Bank Liquidity 7.2.4 Cash Reserve Requirements Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity 7.2.5 Capital Requirements Prior to the Subprime Lending Crisis Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity 7.3 From Originate-To-Hold (OTH) to a Mix of OTH and Originate-To-Distribute (OTD) and the Emergence of the Shadow-Banking System Creation and Regulation of Bank Liquidity (p. 197) 7.3.1 Originate-To-Hold Creation and Regulation of Bank Liquidity 7.3.2 Originate-To-Distribute Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity 7.3.3 Originate-to-Distribute and the Shadow-Banking System 7.4 Regulation to Preserve Uninterrupted Liquidity Creation Going Forward Creation and Regulation of Bank Liquidity 7.4.1 Capital Requirements for Traditional OTH Banking and for OTD Shadow Banking 7.4.1.1 Basel III Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Key Issue #1: Effect of Higher Capital Requirements on Bank Output Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity (p. 210) Key Issue #2: Capital Requirements and the Shadow-Banking System 7.4.2 Liquidity Requirements—International and US Developments Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Key Issue #1: Better Understanding Liquidity Requirements Creation and Regulation of Bank Liquidity (p. 214) Key Issue #2: Understanding How Liquidity Requirements Interact with Capital Requirements Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity (p. 216) 7.5 Conclusion References Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Notes: Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity Creation and Regulation of Bank Liquidity The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications Abstract and Keywords 8.1 Introduction Joseph P. Hughes and Loretta J. Mester Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2 Banking Technology and Performance 8.2.1 Banks’ Risk Menu and Conflicting Incentives for Risk-Taking The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2.2 The Empirical Measurement of Banking Technology and Performance The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2.3 The Structural Approach to Bank Efficiency Measurement: Cost Minimization, Profit Maximization, X-Inefficiency, and Managerial Utility Maximization The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2.4 The Non-structural Approach to Bank Efficiency Measurement The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2.5 Specifying Outputs and Inputs in Structural Models of Production 8.2.6 Specifying Capital Structure in Performance Equations The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.2.7 Specifying Output Quality in the Performance Equation The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications (p. 246) 8.3 Applications of the Structural Approach 8.3.1 Performance in Relation to Organizational Form, Governance, Regulation, and Market Discipline The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.3.2 Uncovering Evidence of Scale Economies by Accounting for Risk and Capital Structure The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.4 Applications of the Non-Structural Approach 8.4.1 Measuring the Value of Investment Opportunities (“Charter Value”) The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.4.2 Measuring the Performance of Capital Strategies 8.4.3 Measuring the Performance of Business Strategies The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.4.4 Relationship of Ownership Structure to Bank Value The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications 8.5 Conclusions and Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications Acknowledgments References The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications Notes: The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications The Performance of Financial Institutions Modeling, Evidence, and some Policy Implications Technological Change and Financial Innovation in Banking: Some Implications for FinTech Abstract and Keywords 9.1 Introduction W. Scott Frame, Larry Wall, and Lawrence J. White Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.2 Financial Innovation: Definition and Determinants Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.3 Process Innovation 9.3.1 Research Evidence from Past Process Innovations Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.3.2 FinTech Process Innovations Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.4 Product Innovation 9.4.1 Research Evidence from Past Product Innovations Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.4.2 Payment Services Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.4.3 FinTech Product Innovations Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.5 Organizational Innovation Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech 9.6 Conclusions References Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Notes: Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Technological Change and Financial Innovation in Banking: Some Implications for FinTech Payments Abstract and Keywords 10.1 Payments Overview David Humphrey Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Payments Payments 10.1.1 Payment Theory Payments 10.1.2 Differences in Payment Structure Payments 10.2 Retail Payments Payments Payments Payments Payments Payments 10.2.1 Government-Issued Digital Currency Payments Payments 10.2.2 Cash and Negative Interest Rates Payments 10.2.3 Payment Costs Payments 10.2.4 Direct Versus Indirect Pricing of Payment Services Payments 10.2.5 Payment Cards Payments Payments 10.2.6 Competition and Money Laundering Payments 10.2.7 Cards with a Chip Payments 10.2.8 Cryptocurrencies and Blockchain Record-Keeping 10.2.9 Fast Payments 24/7 Payments 10.2.10 Effect on Monetary Policy 10.2.11 Financial Inclusion Payments 10.2.12 Availability of Payment Data Payments 10.3 Wholesale Payments Payments 10.3.1 Systemic Risk on Large-value Net Settlement Networks Payments Payments Payments 10.3.2 Daylight Overdrafts on a Gross Transfer Network: Fedwire Payments 10.3.3 Liquidity and Other Risks Payments 10.3.4 Liquidity Savings Mechanisms Payments 10.3.5 Continuous Linked Settlement (CLS) Bank Payments 10.3.6 Securities Settlement Systems 10.3.7 Current Large-Value Payment Issues Payments 10.3.8 Financial Stability Payments 10.4 End Note Acknowledgments References Payments Payments Payments Payments Payments Payments Payments Notes: Payments Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Abstract and Keywords 11.1 Introduction Dasol Kim and Donal McKillop Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2 Institutional Overview 11.2.1 Commercial Banks 11.2.1.1 Defining Features Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.1.2 Historical Origins 11.2.1.3 Commercial Banks Today Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.2 Cooperative Banks 11.2.2.1 Defining Features 11.2.2.2 Historical Origins Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.2.3 Cooperative Banks Today Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.3 Credit Unions 11.2.3.1 Defining Features of Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.3.2 Historical Origins of Credit Unions 11.2.3.3 Credit Unions Today Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.2.4 Savings Banks 11.2.4.1 Defining Features of Savings Banks 11.2.4.2 Historical Origins of Savings Banks 11.2.4.3 Savings Banks Today Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.3 Local Specialization and Comparative Advantages of Community Banks Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions (p. 341) 11.4 Transformation in Market Structure across Community Banking Institution Types 11.4.1 Historical Trends in the US Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.4.2 Deregulation and Industry Consolidation Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.4.3 Entry and Exits Across Bank Types Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.4.4 Financial and Technological Innovations Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.5 Bank Accessibility and Social Implications Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions 11.6 Current Challenges Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions References Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Notes: Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Community Banking Institutions: Commercial Banks, Savings Banks,Cooperative Banks, and Credit Unions Islamic banking: A Review of the Empirical Literature and Future Research Directions Abstract and Keywords 12.1 Introduction Narjess Boubakri, Ruiyuan Ryan Chen, Omrane Guedhami, and Xinming Li Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.2 Growth of Islamic Banking around the World Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.3 Characteristics of Islamic Banking 12.3.1 Islamic Banking: Underlying Principles Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.3.2 Islamic Banking: Financial Products Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.3.3 Islamic Banking versus Conventional Banking Balance Sheets Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4 Review of the Literature Comparing Islamic and Conventional Banks: Micro-Level Evidence Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4.1 Profitability and Efficiency Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4.2 Stability and Performance around the GFC Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4.3 Sharia Supervisory Board Corporate Governance and Risk-Taking Islamic banking: A Review of the Empirical Literature and Future Research Directions (p. 381) 12.4.4 Transparency, Earnings Management, and Earnings Quality Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4.5 Corporate Social Responsibility 12.4.6 Liquidity Creation Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.4.7 Stock Liquidity Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.5 Review of the Literature Comparing Islamic and Conventional Banks: Macro-Level Evidence Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.5.1 Islamic Banks, Financial Development, and Economic Growth Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.5.2 Islamic Banks, Financial Inclusion, Microfinance, and Entrepreneurship Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.5.3 Islamic Banks, Market Discipline, and Market Power Islamic banking: A Review of the Empirical Literature and Future Research Directions 12.6 Conclusion and Directions for Future Research Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions (p. 392) (p. 393) (p. 394) (p. 395) (p. 396) (p. 397) (p. 398) (p. 399) Appendix 12. A: Summary of Islamic Bank Literature Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions References Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Notes: Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Islamic banking: A Review of the Empirical Literature and Future Research Directions Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Abstract and Keywords 13.1 Introduction Robert Lensink and Erwin Bulte Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.2 Group Lending With and Without Joint Liability 13.2.1 The Antecedents of Microfinance Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.2.2 Joint Liability and Adverse Selection Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.2.3 Joint Liability, (Ex Ante) Moral Hazard and Strategic Defaults Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.2.4 Group Lending Without Joint Liability Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.2.5 Summary Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.3 The Shift to Individual Lending and the Commercialization of Microfinance Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success (p. 416) 13.4 Is Microfinance a Success? Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.5 The Design of Microcredit Contracts 13.6 Microfinance-Plus: The Need to Enhance Technical Skills of Microcredit Borrowers Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success 13.7 Should We Subsidize Microfinance? Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success References Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Notes: Can We Improve the Impact of Microfinance?: A Survey of the Recent Literature and Potential Avenues for Success Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Abstract and Keywords 14.1 Introduction Allen N. Berger and Lamont K. Black Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.2 Lending Technologies 14.2.1 The Research Model Based on the Lending Technologies Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery (p. 436) 14.2.2 Classification of the Technologies Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.2.3 Empirical Studies of Three Lending Technologies 14.2.3.1 Empirical Studies of Relationship Lending Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.2.3.2 Empirical Studies of Small Business Credit Scoring Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.2.3.3 Empirical Studies of FinTech Lending Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.3 The “Hardening” of Small Business Lending Information Over Time Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.4 Empirical Research on the Bank Consolidation Channel 14.4.1 The Bank Consolidation Channel Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.4.2 Empirical Research on Consolidation and Small Business Lending Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.5 Empirical Research on the Bank Competition Channel 14.5.1 The Bank Competition Channel 14.5.2 Static Empirical Studies of the Bank Competition Channel Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.5.3 Dynamic Empirical Studies of the Bank Competition Channel 14.6 The Global Financial Crisis and Recovery 14.6.1 The Transmission of Financial Shocks during the Crisis Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.6.2 Relationship Lending, Bank Size, and the Crisis Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.6.3 Government Support during and after the Crisis Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.6.4 Regulatory Changes during and after the Crisis Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.6.5 The Recovery in Small Business Lending Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery 14.7 Conclusion Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Acknowledgments References Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Notes: Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Small Business Lending: The Roles of Technology and Regulationfrom Pre-crisis to Crisis to Recovery Residential Mortgages Abstract and Keywords 15.1 Introduction Andreas Lehnert and Alex Martin Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Residential Mortgages 15.2 Residential Mortgage Features 15.2.1 Mortgage Payments Residential Mortgages 15.2.2 The Credit-Extension Decision Residential Mortgages Residential Mortgages 15.2.3 Foreclosure Residential Mortgages 15.2.4 Mortgage Servicing Residential Mortgages 15.2.5 Industrial Organization of the Mortgage Market Residential Mortgages (p. 477) 15.3 Household Decision-Making 15.3.1 Household Choice of Mortgage Features Residential Mortgages Residential Mortgages Residential Mortgages Residential Mortgages 15.3.2 Household Decisions to Refinance or Default Residential Mortgages 15.3.3 Evidence from US Mortgage Modification Programs Residential Mortgages Residential Mortgages 15.4 Residential Mortgages as a Financial Asset Residential Mortgages 15.4.1 Valuing a Mortgage Residential Mortgages 15.4.2 Mortgage-Backed Securities Residential Mortgages Residential Mortgages Residential Mortgages 15.5 Regulation of Mortgages Residential Mortgages Residential Mortgages 15.6 Financial Stability and Residential Mortgages Residential Mortgages 15.6.1 Residential Mortgages as a Vulnerability of the Financial System Residential Mortgages Residential Mortgages 15.6.2 Consequences of an Increase in Mortgage Credit Supply Residential Mortgages 15.6.3 Macroprudential Policies and Mortgages Residential Mortgages Residential Mortgages 15.7 Conclusion Residential Mortgages References Residential Mortgages Residential Mortgages Residential Mortgages Residential Mortgages Residential Mortgages Residential Mortgages Notes: Residential Mortgages Securitization Abstract and Keywords 16.1 Introduction Barbara Casu and Anna Sarkisyan Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Securitization Securitization 16.2 The Evolution of Securitization Securitization Securitization Securitization Securitization Securitization Securitization Securitization Securitization Securitization 16.3 Mechanics of Securitization Securitization 16.3.1 Asset Selection Securitization Securitization (p. 514) 16.3.2 Creation of an SPV and Transfer of Assets Securitization 16.3.3 Structuring the Transaction Securitization Securitization 16.3.4 Issuance of Asset-Backed Securities Securitization 16.3.5 Allocation of Cash Flows 16.4 Benefits and Risks of Securitization Securitization 16.4.1 Originators Securitization 16.4.2 Borrowers Securitization Securitization 16.4.3 Investors Securitization 16.4.4 Economy Securitization 16.5 Concluding Remarks: Regulatory Reforms and the Future of Securitization Securitization References Securitization Securitization Securitization Securitization Securitization Securitization Notes: Securitization Securitization Shadow Banking Abstract and Keywords 17.1 What is Shadow Banking? Tobias Adrian, Adam B. Ashcraft, Peter Breuer, and Nicola Cetorelli Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Shadow Banking Shadow Banking 17.2 How Does One Define and Measure Shadow Banking? Shadow Banking Shadow Banking 17.3 Why Does Shadow Banking Exist? 17.3.1 Specialization Shadow Banking Shadow Banking 17.3.2 Innovation in Composition of Money Shadow Banking Shadow Banking Shadow Banking 17.3.3 Regulatory Arbitrage 17.4 How does Shadow Banking differ from Market-Based Finance? Shadow Banking 17.4.1 Structural Characteristics Shadow Banking Shadow Banking Shadow Banking 17.4.2 Financial Stability Implications Shadow Banking 17.5 Why Should We Care About Shadow Banking? 17.5.1 Regulatory Arbitrage Shadow Banking 17.5.2 Neglected Risks Shadow Banking 17.5.3 Funding Fragilities Shadow Banking (p. 548) 17.5.4 Leverage Cycles Shadow Banking 17.5.5 Agency Problems Shadow Banking 17.6 How can Supervision and Regulation be Strengthened? 17.6.1 Taking Stock of Progress Shadow Banking Shadow Banking Shadow Banking 17.6.2 Outstanding Priorities Shadow Banking Shadow Banking 17.7 Case Studies of Policy Challenges on the Horizon (p. 556) 17.7.1 Credit Intermediation in China Shadow Banking Shadow Banking Shadow Banking 17.7.2 Structured Leveraged Finance in the United States Shadow Banking Shadow Banking 17.7.3 Asset Management Shadow Banking 17.7.4 Synthetic Prime Brokerage Shadow Banking 17.7.5 FinTech Shadow Banking 17.8 Conclusion References Shadow Banking Shadow Banking Shadow Banking Shadow Banking Shadow Banking Shadow Banking Notes: Shadow Banking Shadow Banking Shadow Banking Shadow Banking Shadow Banking Shadow Banking Modern Central Banking Abstract and Keywords 18.1 Introduction Frederic S. Mishkin Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Modern Central Banking 18.2 The Science of Central Banking 18.2.1 Price Stability has Important Benefits (p. 575) 18.2.2 Inflation is Always and Everywhere a Monetary Phenomenon Modern Central Banking 18.2.3 There is no Long-Run Tradeoff between Unemployment and Inflation Modern Central Banking 18.2.4 Expectations Play a Crucial Role in the Macro Economy 18.2.5 Monetary Policy is Subject to the Time-Inconsistency Problem Modern Central Banking 18.2.6 Credible Commitment to a Nominal Anchor Promotes Price and Output Stability Modern Central Banking 18.2.7 Central Bank Independence Improves the Efficiency of Monetary Policy 18.2.8 Financial Instability Plays and Important Role in Business Cycles Modern Central Banking 18.2.9 The Effective Zero-Lower-Bound on Nominal Interest Rates can be a Significant Constraint on Monetary Policy Modern Central Banking 18.3 Governance of Central Banks Modern Central Banking 18.4 Monetary Policy 18.4.1 Exchange Rate Pegs Modern Central Banking 18.4.2 Instrument Rules Modern Central Banking 18.4.3 Inflation Targeting Modern Central Banking Modern Central Banking 18.4.4 Non-Conventional Monetary Policy Modern Central Banking Modern Central Banking 18.5 Financial Stability Policy Modern Central Banking 18.5.1 Reactive Policy: Liquidity Provision 18.5.2 Proactive Policy: Financial Supervision Modern Central Banking Modern Central Banking 18.5.3 Financial Stability and Monetary Policy Modern Central Banking Modern Central Banking Modern Central Banking 18.6 Concluding Remarks References Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Modern Central Banking Notes: Modern Central Banking Modern Central Banking Lender of Last Resort: A New Role for the Old Instrument Abstract and Keywords 19.1 Introduction Xavier Freixas and Bruno M. Parigi Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.2 Pure Liquidity Shocks Lender of Last Resort: A New Role for the Old Instrument 19.2.1 Maturities Transformation Risk for a Single Institution Lender of Last Resort: A New Role for the Old Instrument 19.2.2 Liquidity-Triggered Systemic Risk Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.3 Distinguishing Between Insolvent and Illiquid Banks 19.3.1 Unidentifiable Shocks Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.3.2 Adverse Selection-Driven Liquidity Dry-Ups Lender of Last Resort: A New Role for the Old Instrument 19.4 Systemic Crises and Contagion 19.4.1 The “Domino Effect” Approach Lender of Last Resort: A New Role for the Old Instrument 19.4.2 The Illiquidity View of Contagion Lender of Last Resort: A New Role for the Old Instrument 19.4.3 Information Disclosure during Financial Crises Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.4.4 Measuring Links among Financial Institutions Lender of Last Resort: A New Role for the Old Instrument 19.5 LOLR Policy 19.5.1 A New Background Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.5.2 LOLR and Monetary Policy Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.5.3 The LOLR in the Eurozone Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.5.4 The Effects of Liquidity Injection Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument 19.6 Conclusions Lender of Last Resort: A New Role for the Old Instrument References Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Lender of Last Resort: A New Role for the Old Instrument Notes: Lender of Last Resort: A New Role for the Old Instrument Bank Bailouts and Bail-Ins Abstract and Keywords 20.1 Introduction Raluca A. Roman Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2 Bailouts 20.2.1 Bailouts and their Objectives Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.2 Bailout Experience 20.2.2.1 The US Bailout Experience Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.2.2 EU Bailout Experience Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.3 Theoretical Motivation for Bailouts 20.2.3.1 Theoretical Channels for Bailouts Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.3.2 Additional Theoretical Research for Bailouts 20.2.4 Bailout Empirical Research: Were Objectives Met? 20.2.4.1 US Bailout Empirical Evidence Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.4.2 Other Effects and Implications of US Bailouts Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.2.4.2 EU Bailout Empirical Evidence Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins (p. 655) 20.2.5 Conclusions about Bailouts Bank Bailouts and Bail-Ins (p. 656) 20.3 Bail-Ins 20.3.1 Bail-ins and their Objectives Bank Bailouts and Bail-Ins 20.3.2 Bail-in Frameworks and Experience 20.3.2.1 US Bail-in Framework 20.3.2.2 US Bail-in Experience Bank Bailouts and Bail-Ins (p. 658) 20.3.2.3 EU Bail-in Framework 20.3.2.4 EU Bail-in Experience Cyprus Experience Bank Bailouts and Bail-Ins Greece Experience Italy Experience Bank Bailouts and Bail-Ins Portugal Experience Bank Bailouts and Bail-Ins Spain Experience 20.3.3 Theoretical Motivation for Bail-Ins 20.3.3.1 Theoretical Channels for Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.3.3.2 Theoretical Research for Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins (p. 666) 20.3.4 Bail-in Empirical Research: Were Objectives Met? 20.3.4.1 US Bail-in Empirical Evidence 20.3.4.2 EU Bail-in Empirical Evidence Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.3.5 Other Bail-in Instruments: Contingent Convertible Bonds (CoCos) Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins 20.3.6 Conclusions about Bail-ins Bank Bailouts and Bail-Ins 20.4 Other Approaches: Failure and Bankruptcy Bank Bailouts and Bail-Ins 20.5 Conclusions Bank Bailouts and Bail-Ins Acknowledgments References Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Notes: Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Bailouts and Bail-Ins Bank Runs and Moral Hazard: A Review of Deposit Insurance Abstract and Keywords 21.1 Introduction Deniz Anginer and Asli Demirgüç-Kunt Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Bank Runs and Moral Hazard: A Review of Deposit Insurance (p. 686) 21.2 Economic Rationale for Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance 21.3 Brief History of Adoption and Recent Changes Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance 21.4 Economic Benefits of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance 21.5 Economic Costs of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance 21.6 Deposit Insurance Design and the Institutional Environment Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance 21.7 Concluding Thoughts References Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Bank Runs and Moral Hazard: A Review of Deposit Insurance Notes: Bank Capital Requirements after the Financial Crisis Abstract and Keywords 22.1 Introduction 22.1.1 What is Bank Capital? Mark E. Van Der Weide and Jeffrey Y. Zhang Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Bank Capital Requirements after the Financial Crisis 22.1.2 A Brief History of Capital Regulation Bank Capital Requirements after the Financial Crisis 22.2 Literature Review Bank Capital Requirements after the Financial Crisis 22.2.1 Higher Bank Capital Requirements Bank Capital Requirements after the Financial Crisis 22.2.2 Lower Bank Capital Requirements Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.2.3 Optimal Bank Capital Requirements Bank Capital Requirements after the Financial Crisis 22.3 Recalibrating the Existing Framework 22.3.1 Quality of Capital Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.3.2 Quantity of Capital 22.3.3 Risk Weighting Bank Capital Requirements after the Financial Crisis 22.3.3.1 Definition 22.3.3.2 History Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.3.3.3 Current Bank Capital Requirements after the Financial Crisis (p. 721) 22.4 Major Structural Changes to the Framework 22.4.1 Capital Conservation Buffer Bank Capital Requirements after the Financial Crisis 22.4.2 Countercyclical Capital Buffer (CCyB) Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.4.3 G-SIB Surcharge 22.4.3.1 G-SIB Definition Bank Capital Requirements after the Financial Crisis 22.4.3.2 Risk-Based Capital Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.4.3.3 Enhanced Supplementary Leverage Ratio Bank Capital Requirements after the Financial Crisis 22.4.4 Basel III Leverage Ratio Bank Capital Requirements after the Financial Crisis 22.4.5 Total Loss-Absorbing Capacity Bank Capital Requirements after the Financial Crisis 22.4.6 Stress Testing Bank Capital Requirements after the Financial Crisis 22.5 Quantitative Impact Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis 22.6 Conclusion Bank Capital Requirements after the Financial Crisis References Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Notes: Bank Capital Requirements after the Financial Crisis Bank Capital Requirements after the Financial Crisis Market Discipline in Regulation: Pre and Post Crisis Abstract and Keywords 23.1 Introduction Mark J. Flannery and Robert R. Bliss Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis 23.2 What is Market Discipline? Market Discipline in Regulation: Pre and Post Crisis 23.2.1 Monitoring Market Discipline in Regulation: Pre and Post Crisis 23.2.2 Influence Induced by Security Price Changes Market Discipline in Regulation: Pre and Post Crisis 23.2.3 Influence Induced by Investors’ Quantity Changes: Runs Market Discipline in Regulation: Pre and Post Crisis 23.2.4 Who are the Logical Discipliners? Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis 23.3 Evidence 23.3.1 Monitoring Via Debt Yields Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis 23.3.2 Forecasting Market Discipline in Regulation: Pre and Post Crisis 23.3.3 Monitoring Via Equity Prices Market Discipline in Regulation: Pre and Post Crisis 23.3.4 Studies of “Influencing” Market Discipline in Regulation: Pre and Post Crisis (p. 751) 23.4 The Effects of Recent Reforms on Market Discipline Market Discipline in Regulation: Pre and Post Crisis 23.4.1 The Basel Committee on Bank Supervision 23.4.2 The FSB’s New Resolution Regimes Market Discipline in Regulation: Pre and Post Crisis 23.4.3 Implementation of BCBS and FSB Rules Market Discipline in Regulation: Pre and Post Crisis 23.4.4 Impact on Market Discipline Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis 23.5 The Evolution of Pillar 3 Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis 23.6 Conclusions Market Discipline in Regulation: Pre and Post Crisis Appendix 23.A Potential Impediments to Market Discipline No Single Representative Investor Market Discipline in Regulation: Pre and Post Crisis Pooling of Securities Market Discipline in Regulation: Pre and Post Crisis Financial Intermediaries Market Discipline in Regulation: Pre and Post Crisis Econometric Impediments to Indirect Market Discipline What is in a Credit Spread? Market Discipline in Regulation: Pre and Post Crisis Biases in Forecasting Discrete Outcomes Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Summary Appendix 23.B Additional Sources Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis References Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Further Reading Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Notes: Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Market Discipline in Regulation: Pre and Post Crisis Competition in the Banking Sector Abstract and Keywords 24.1 Introduction Hans Degryse, Paola Morales-Acevedo, and Steven Ongena Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Competition in the Banking Sector 24.2 Measuring Banking Competition and Market Power Competition in the Banking Sector (p. 778) 24.2.1 Traditional Industrial Organization 24.2.1.1 Structure-Conduct-Performance Competition in the Banking Sector Competition in the Banking Sector 24.2.1.2 Efficient-Structure Hypothesis Competition in the Banking Sector Competition in the Banking Sector 24.2.2 New Empirical Industrial Organization 24.2.2.1 Panzar and Rosse (1987) Competition in the Banking Sector 24.2.2.2 The (Adjusted) Lerner Index Competition in the Banking Sector Competition in the Banking Sector 24.2.2.3 The Boone (2008) Competition Indicator Competition in the Banking Sector 24.2.2.4 Conjectural-Variations Method Competition in the Banking Sector (p. 787) 24.2.2.5 Structural Demand Models Competition in the Banking Sector Competition in the Banking Sector 24.3 Competition: Conduct and Strategy 24.3.1 Market Structure and Conduct 24.3.1.1 Loan Markets 24.3.1.1.1 Local Markets Competition in the Banking Sector 24.3.1.1.2 Multimarket Competition in the Banking Sector Competition in the Banking Sector 24.3.1.2 Deposit Markets 24.3.1.2.1 Local Market Competition in the Banking Sector 24.3.1.2.2 Multimarket Competition in the Banking Sector (p. 794) 24.3.1.3 Interplay Between Markets 24.3.1.4 Dynamics of Branching and Competition Competition in the Banking Sector 24.4 Banking Regulation and Competition 24.4.1 Regulation and Market Structure Competition in the Banking Sector 24.4.2 Regulation and Bank Conduct Competition in the Banking Sector 24.4.3 Regulation and Bank Strategy 24.4.4 Regulation and Financial Stability and Development Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector 24.4.5 Banking Sector Deregulation and Firm Financing and Performance Competition in the Banking Sector (p. 802) 24.5 Information Sharing and Competition Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector 24.6 Conclusion Acknowledgments Competition in the Banking Sector References Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Notes: Competition in the Banking Sector Competition in the Banking Sector Competition in the Banking Sector Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Abstract and Keywords 25.1 Introduction Gregory Elliehausen Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2 Psychology and Economic Behavior Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.1 Extensiveness of Decision Processes 25.2.1.1 Household Investment and Borrowing Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.1.2 Saving Behavior Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.1.3 Rationality of Consumers’ Economic Decision-Making (p. 820) 25.2.2 Heuristics and Biases and Other Systematic Errors Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.2.1 Heuristics and Biases Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.2.2 Framing 25.2.2.3 Prospect Theory and Mental Accounting Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.2.4 Hyperbolic Discounting Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.2.5 Robustness of Evidence of Cognitive Biases Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.2.2.6 Fast and Frugal Heuristics Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions (p. 831) 25.3 Rationality of Credit Card Use Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.4 Financial Literacy Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.4.1 Evidence on the Effects of Financial Literacy on Behavior Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions (p. 837) 25.4.2 Implications of Behavioral Studies for Financial Literacy Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.5 Limited Information and Heuristic Decision-Making in Market Environments Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions 25.6 Conclusions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions References Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Notes: Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Behavioral Economics, Financial Literacy, and Consumers’ Financial Decisions Systemic Risk in Banking after the Great Financial Crisis Abstract and Keywords Olivier De Bandt and Philipp Hartmann Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Systemic Risk in Banking after the Great Financial Crisis 26.1 Introduction Systemic Risk in Banking after the Great Financial Crisis (p. 849) 26.2 The Concept of Systemic Risk 26.2.1 Systemic Events and Crises Systemic Risk in Banking after the Great Financial Crisis 26.2.2 The “Financial Fragility Hypothesis” Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis 26.2.3 “Efficient” versus “Self-Fulfilling” Systemic Events Systemic Risk in Banking after the Great Financial Crisis 26.2.4 Systemic Risk and Public Policy Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis (p. 858) 26.3 Theoretical Models of Systemic Risk in Banking 26.3.1 Contagion Systemic Risk in Banking after the Great Financial Crisis 26.3.1.1 Interactions of Retail Depositors across Banks 26.3.1.2 Interbank Markets Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis 26.3.1.3 Payment and Settlement Systems Systemic Risk in Banking after the Great Financial Crisis 26.3.1.4 “Fire Sales,” Liquidity Problems, and Endogenous Risk 26.3.2 Macroeconomic Fluctuations, Aggregate Shocks, and Lending Booms Systemic Risk in Banking after the Great Financial Crisis 26.3.2.1 Aggregate Shocks to the Banking Sector Systemic Risk in Banking after the Great Financial Crisis (p. 864) 26.3.2.2 Credit Booms and Unraveling of Imbalances Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis (p. 867) 26.4 Empirical Evidence on Systemic Risk in Banking 26.4.1 Evidence on Bank Contagion Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis (p. 871) 26.4.2 Banking Crises, Aggregate Fluctuations, and Lending Booms Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis 26.5 Conclusion Systemic Risk in Banking after the Great Financial Crisis References Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Notes: Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Systemic Risk in Banking after the Great Financial Crisis Hardy Perennials: Banking Crises Around the World Abstract and Keywords 27.1 Introduction Gerard Caprio, Jr. Jr and Patrick Honohan Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Hardy Perennials: Banking Crises Around the World 27.2 Early History Hardy Perennials: Banking Crises Around the World 27.3 Diverse Origins: Management, Government, and Macroeconomics in Recent Crises 27.3.1 Management and Fraud Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World 27.3.2 Government Policies Hardy Perennials: Banking Crises Around the World 27.3.3 Macro Boom and Bust Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World 27.4 Panic and Contagion: Explaining Sudden and Fast-Moving Banking Crises Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World (p. 895) 27.5 Costs of Crises Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World (p. 897) 27.6 Crisis Response and Prevention 27.6.1 An Ounce of Prevention Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World 27.6.2 A Pound of Cure Hardy Perennials: Banking Crises Around the World 27.7 The Crisis of 2007 and the Euro Crisis: Some Things Old and New Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World 27.8 Toward Dynamic Regulation Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World (p. 906) Acknowledgments References Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Notes: Hardy Perennials: Banking Crises Around the World Hardy Perennials: Banking Crises Around the World Bank Failures, The Great Depression, and Other “Contagious” Events Abstract and Keywords 28.1 Introduction Charles W. Calomiris Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Bank Failures, The Great Depression, and Other “Contagious” Events (p. 911) 28.2 “Contagion” versus Fundamentals as Causes of Bank Failures Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events 28.3 US Bank Distress During the Great Depression Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events (p. 918) 28.4 Microeconomic Studies of Local Contagion Bank Failures, The Great Depression, and Other “Contagious” Events 28.5 US Bank Distress in the Pre-Depression Era Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events 28.6 Other Historical Experiences with Bank Failures 28.7 Bank Failures in the Late Twentieth Century Bank Failures, The Great Depression, and Other “Contagious” Events 28.8 Conclusion Bank Failures, The Great Depression, and Other “Contagious” Events References Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Bank Failures, The Great Depression, and Other “Contagious” Events Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Abstract and Keywords 29.1 Introduction Claudia M. Buch and Gayle L. Delong Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.2 Stylized Facts on Cross-Border Entry and Complexity 29.2.1 Cross-Border Entry Through Mergers and Acquisitions Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.2.2 Changing Patterns in Bank Complexity Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.3 Determinants of Cross-Border Bank Entry Through Acquisitions Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.3.1 Information Costs 29.3.2 Regulations Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.3.3 Bank-Specific Factors Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.3.4 Macroeconomic Factors Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.3.5 Summary 29.4 Effects of Cross-Border Entry on Efficiency and Competition 29.4.1 Event Studies Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.4.2 Comparisons of Bank Efficiency Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.4.3 Summary 29.5 Effects of Cross-Border Entry on Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk 29.6 Summary and Outlook for Future Work Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Acknowledgments References Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Notes: Banking Globalization: Cross-border Entry, Complexity,and Systemic Risk Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Abstract and Keywords 30.1 Introduction Nicola Cetorelli and Michael Blank Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.2 The Causality Debate Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.3 Banks Matter Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.4 How Do Banks Matter? Banking and Real Economic Activity: Foregone Conclusions and Open Challenges (p. 959) 30.5 The Role of Bank Competition Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.6 Banks and Industry Dynamics in Product Markets Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.7 Unintended Consequences of the Great Recession Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges 30.8 Conclusions Banking and Real Economic Activity: Foregone Conclusions and Open Challenges References Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Notes: Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking and Real Economic Activity: Foregone Conclusions and Open Challenges Banking in the United States Abstract and Keywords 31.1 Introduction Robert DeYoung Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in the United States Banking in the United States Banking in the United States Banking in the United States 31.2 The Evolution of the US Banking Industry 31.2.1 Restrictive Government Regulations Banking in the United States 31.2.2 Innovation and Change Banking in the United States Banking in the United States 31.2.3 Deregulation Banking in the United States Banking in the United States 31.2.4 The Financial Crisis Banking in the United States Banking in the United States 31.2.5 Re-regulation Banking in the United States 31.3 Two Strategic Groups Banking in the United States Banking in the United States Banking in the United States Banking in the United States 31.4 Industry Consolidation Continues Banking in the United States Banking in the United States Banking in the United States Banking in the United States Banking in the United States 31.5 The Future of Banking in the US 31.5.1 FinTech Banking in the United States Banking in the United States 31.5.2 Resolving Large Banks Banking in the United States 31.6 In Summary Banking in the United States References Banking in the United States Notes: Banking in the United States Banking in the United States Banking in Europe: Integration, Reform, and the Road to a Banking Union Abstract and Keywords 32.1 Introduction John Goddard, Philip Molyneux, and John O. S. Wilson Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.2 Structure and Performance of European Banking 32.2.1 Deregulation and Integration Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.2.2 Profitability and Efficiency Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.2.3 Competition and Risk Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.3 Crisis in European Banking Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.4 New Regulatory Architecture and Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union 32.4.1 European Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union (p. 1026) 32.5 Summary References Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Notes: Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Europe: Integration, Reform, and the Road to a Banking Union Banking in Japan: A Post-global Financial Crisis Perspective Abstract and Keywords 33.1 Introduction Hirofumi Uchida and Gregory F. Udell Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in Japan: A Post-global Financial Crisis Perspective (p. 1034) 33.2 Overview of the Japanese Banking System 33.2.1 The Importance of Banking and Intermediated Finance in Japan Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.2.2 Segmentation in the Japanese Banking Market Banking in Japan: A Post-global Financial Crisis Perspective (p. 1040) 33.2.2.1 City Banks 33.2.2.2 Regional Banks and Second Regional Banks Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.2.2.3 Trust Banks 33.2.2.4 Long-term Credit Banks 33.2.2.5 Foreign Banks 33.2.2.6 Shinkin Banks and Credit Cooperatives 33.2.2.7 Other Financial Institutions Providing Commercial Banking Services Banking in Japan: A Post-global Financial Crisis Perspective 33.2.2.8 Public Banks Banking in Japan: A Post-global Financial Crisis Perspective 33.2.3 Market Structure and Competition of the Japanese Banking Industry Banking in Japan: A Post-global Financial Crisis Perspective 33.2.4 The Efficiency of Japanese Banks Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.2.5 Commercial versus Universal Banking in Japan Banking in Japan: A Post-global Financial Crisis Perspective (p. 1053) 33.2.6 Regulation of the Japanese Banking System 33.3 Selected Topics in Japanese Banking 33.3.1 The Main Bank System and Relationship Banking Banking in Japan: A Post-global Financial Crisis Perspective 33.3.1.1 Traditional Main Bank Studies Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.3.1.2 SME Relationship Lending 33.3.2 Lending Technologies in Japan 33.3.2.1 The Role of Collateral in Business Lending in Japan Banking in Japan: A Post-global Financial Crisis Perspective 33.3.2.2 Small Business Credit Scoring in Japan 33.3.2.3 Government Guarantee Programs in Japanese Business Lending Banking in Japan: A Post-global Financial Crisis Perspective 33.3.3 The Japanese Banking Crisis 33.3.3.1 Brief Review of the Crisis Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.3.3.2 Causes of the Crisis Banking in Japan: A Post-global Financial Crisis Perspective 33.3.3.3 The Effects of the Crisis 33.3.4 Banking in Post-Crisis Japan 33.3.4.1 Japanese Banks and the Global Financial Crisis Banking in Japan: A Post-global Financial Crisis Perspective 33.3.4.2 Lost-decades and banking problems Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective 33.4 Conclusion (p. 1067) Acknowledgments References Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Notes: Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Japan: A Post-global Financial Crisis Perspective Banking in Africa Abstract and Keywords 34.1 Introduction Thorsten Beck, Robert Cull, and Patricio Valenzuela Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in Africa Banking in Africa 34.2 Stock-Taking: Where Does Africa Stand? Banking in Africa 34.2.1 Aggregate Financial Development in Africa in International Comparison Banking in Africa Banking in Africa Banking in Africa Banking in Africa Banking in Africa 34.2.2 Benchmarking Africa’s Banking Systems Banking in Africa Banking in Africa 34.2.3 Drilling Deeper—Bank- and Branch-Level Evidence Banking in Africa Banking in Africa Banking in Africa 34.2.4 Enterprise Access to Finance in International Comparison Banking in Africa Banking in Africa 34.2.5 Household Access to Finance in International Comparison Banking in Africa Banking in Africa Banking in Africa Banking in Africa 34.3 Overcoming Barriers to Financial Inclusion: Branch Expansion, Field Experiments, and Technology Banking in Africa 34.3.1 Bank Branching Banking in Africa Banking in Africa 34.3.2 Assessing Tailored Product Interventions with Randomized Field Experiments Banking in Africa (p. 1101) 34.3.3 Technological Innovation Banking in Africa Banking in Africa Banking in Africa Banking in Africa Banking in Africa Banking in Africa 34.4 Beyond Financial Inclusion: New Challenges 34.4.1 The Long-Term Finance Challenge Banking in Africa 34.4.2 Cross-Border Banking and Regulatory Challenges Banking in Africa Banking in Africa 34.5 Conclusion Banking in Africa Banking in Africa References Banking in Africa Banking in Africa Banking in Africa Banking in Africa Notes: Banking in Africa Banking in Africa Banking in Africa Banking in China Abstract and Keywords 35.1 Introduction Leora Klapper, María Soledad Martínez Pería, and Bilal Zia Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in China Banking in China 35.2 The Structure and Performance of the Chinese Financial Sector Banking in China Banking in China Banking in China Banking in China Banking in China 35.3 Shadow Banking: Causes and Consequences of its Spectacular Growth 35.3.1 Drivers of Shadow Banking Banking in China Banking in China Banking in China 35.3.2 Who Participates in Shadow Banking? Banking in China (p. 1123) 35.3.3 What are the Risks Involved? Is Shadow Banking Good or Bad? Banking in China Banking in China 35.3.4 What is the Future of Shadow Banking in China? Banking in China (p. 1126) 35.4 Financial Inclusion in China 35.4.1 Access to and Use of Financial Services Banking in China 35.4.2 Understanding the Unbanked Banking in China 35.4.3 Opportunities for Increasing Financial Inclusion Banking in China 35.5 Conclusions Acknowledgments Banking in China References Banking in China Banking in China Notes: Banking in China Banking in China Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Abstract and Keywords 36.1 Introduction Zuzana Fungáčová, Iftekhar Hasan, Laura Solanko, and Paul Wachtel Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.2 History of Transition Banking Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union (p. 1134) 36.2.1 The First Decades Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.2.2 Challenges from the Global Financial Crisis Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.2.3 Going Forward Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.3 Banking Industry Today: Is Transition Over? 36.3.1 Intermediation and the Role of Banks Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.3.2 Banking Sector Structure Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.3.3 Bank Lending Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.4 Financial Inclusion in Transition Countries 36.4.1 Measuring Financial Inclusion—Account Ownership Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.4.2 Account Usage Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.4.3 Financial Inclusion—Saving and Borrowing Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union 36.4.4 Barriers to Financial Exclusion 36.5 Conclusion Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union References Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Notes: Banking in the Transition Countries of Central, Southern, and Eastern Europe and the Former Soviet Union Banking in Latin America: Developments and Prospects Abstract and Keywords 37.1 Introduction Fernando J. Cardim De Carvalho, Luiz Fernando De Paula, and Jonathan Williams Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects (p. 1154) 37.2 Banking Consolidation in Latin America: A Quick Overview Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.3 The Evolution of Financial Policy in Latin America 37.3.1 Financial Liberalization in Latin America: Causes and Outcomes Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.3.2 A New Model and Restructuring Initiatives: Privatization and Universal Banking Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.3.3 Global Financial Crisis and Consolidation Banking in Latin America: Developments and Prospects 37.4 Financial Penetration in Latin America Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.5 The Effects of Banking Consolidation 37.5.1 Market Structure, Privatization, Foreign Bank Penetration, and Bank Performance Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects (p. 1172) 37.5.2 Market Concentration and Competition Effects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.5.3 Consolidation and the Allocation of Credit Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.5.4 Consolidation and Interest Rate Spreads 37.6 Regulatory Developments Post GFC Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.7 Latin American Development Banks: Some New Developments or an Impasse? Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects 37.8 Conclusion Banking in Latin America: Developments and Prospects References Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Banking in Latin America: Developments and Prospects Notes: Banking in Latin America: Developments and Prospects Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Abstract and Keywords 38.1 Introduction Fariborz Moshirian and Eliza Wu Edited by Allen N. Berger, Philip Molyneux, and John O. S. Wilson Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.2 Size and Significance of the Australian and NZ Banking Industries Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.3 Market Competition Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.4 Balance Sheets—Sources of Funding Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.5 Balance Sheets—Uses of Funding 38.5.1 Asset Composition of Banks in Australia and NZ and Globally Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.5.2 Growing Reliance on Mortgages Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.6 Efficiency and Profitability Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.7 Explicit and Implicit Government Support for Banks Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.8 Resilience of the Australian and New Zealand Banking Systems 38.8.1 Capital Requirements Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.8.2 Recent Banking Regulatory Reforms Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration 38.9 Conclusions Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration References Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Notes: Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration Banking in Australia and New Zealand—Geographic Proximity, Market Concentration, and Banking Integration