Microeconomics of Banking

Fülszöveg

XAVIER FREIXAS AND
JEAN-CHARLES ROCHET
MICROECONOMICS OF BANKING
Twenty years ago, most banking courses focused on either management or monetary aspects of banking, with no connecting link. Since then, a microeconomic theory of banking has developed, mainly through a shift in emphasis from the modeling of risk to the modeling of imperfect information. This asymmetric information model is based on the assumption that different economic agents possess different pieces of information on relevant economic variables, which they will use for their own benefit. The model has been extremely useful in explaining the role of banks in the economy. It has also been helpful in pointing out structural weaknesses of the banking sector that may justify government intervention—for example, exposure to runs and panics, the persistence of rationing in the credit market, and solvency problems.
Microeconomics of Banking provides a guide to the new theory. Topics include: why financial... Tovább

Fülszöveg

XAVIER FREIXAS AND
JEAN-CHARLES ROCHET
MICROECONOMICS OF BANKING
Twenty years ago, most banking courses focused on either management or monetary aspects of banking, with no connecting link. Since then, a microeconomic theory of banking has developed, mainly through a shift in emphasis from the modeling of risk to the modeling of imperfect information. This asymmetric information model is based on the assumption that different economic agents possess different pieces of information on relevant economic variables, which they will use for their own benefit. The model has been extremely useful in explaining the role of banks in the economy. It has also been helpful in pointing out structural weaknesses of the banking sector that may justify government intervention—for example, exposure to runs and panics, the persistence of rationing in the credit market, and solvency problems.
Microeconomics of Banking provides a guide to the new theory. Topics include: why financial intermediaries exist, the industrial organization approach to banking, optimal contracting be^een lenders and borrowers, the equilibrium of the credit market, macroeconomic consequences of financial imperfections, individual bank runs and systemic risk, risk management inside the banking firm, and bank regulation. Each chapter ends with a detailed problem set and solutions.
Xavier Freixas is Professor of Financial Economics at Universität Pompeu Fabra, Spain. Jean-Charles Rochet is Professor of Economics at Université des Sciences Sociales de Toulouse, France.-
"The authors have provided an extremely thor2ugh and up-to-date survey of microeconomic theories of financial intermediation. This work manages to be both rigorous and pleasant to read. Such a book was long overdue and should be required reading for anybody interested in the economics of banking and finance."
MATHIAS DEWATRIPONT, PROFESSOR OF'SCONOMICS, ECARE, UNIVERSITÉ LIBRE DE BRUXELLES
"The book is a major contribution to the literature on the theory of banking and intermediation. It brings together and synthesizes a broad range of material in an accessible way. I recommend it td all serious scholars and students of the subject. The authors are to be congratulated on a superb achievement."
FRANKLIN ALLEN, NIPPON LIFE PROFESSOR OF FINANCE A|\ID ECONOMICS, WHARTON SCHOOL, UNIVERSITY OF PENNSYLVANIA
"This book provides the first comprehensive treatment of the microeconomics of banking. It gives an impressive synthesis of an enormous body of research developed over the last twenty years. It is clearly written and a pleasure to read. What I found particularly useful is the great effort Xavier Frei)(gs and Jean-Charles Rochet have taken to systematically integrate the theory of financial intermediation into classical microeconomics and finance theory. This book is likely to become essential reading for all graduate students in economics, business, and finance."
PATRICK BOLTON, PROFESSOR OF ECONOMICS, ECARE, UNIVERSITÉ LIBRE DE BRUXELLES; AND CENTER, TILBURG UNIVERSITY
"At last the profession has an advanced book on the theory of banking. Freixas and Rochet make a real contribution to the profession by integrating a disparate but growing literature on intermediation. They show the role that these institutions play in the economy and the complex nature of optional decision making in an imperfect capital market. The I, I book should be required reading for serious students in the area."
. ' T ANTHONY M. SANTOMERO, RICHARD K. MELLON
. . I PROFESSOR OF FINANCE, WHARTON SCHOOL,
. ^ UNIVERSITY OF PENNSYLVANIA Vissza