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Handbook of Financial Intermediation and Banking

  • 1st Edition - May 27, 2008
  • Latest edition
  • Editors: Anjan V. Thakor, Arnoud W. A. Boot
  • Language: English

The growth of financial intermediation research has yielded a host of questions that have pushed "design" issues to the fore even as the boundary between financial intermediation… Read more

Description

The growth of financial intermediation research has yielded a host of questions that have pushed "design" issues to the fore even as the boundary between financial intermediation and corporate finance has blurred. This volume presents review articles on six major topics that are connected by information-theoretic tools and characterized by valuable perspectives and important questions for future research. Touching upon a wide range of issues pertaining to the designs of securities, institutions, trading mechanisms and markets, industry structure, and regulation, this volume will encourage bold new efforts to shape financial intermediaries in the future.

Key features

  • Original review articles offer valuable perspectives on research issues appearing in top journals
  • Twenty articles are grouped by six major topics, together defining the leading research edge of financial intermediation
  • Corporate finance researchers will find affinities in the tools, methods, and conclusions featured in these articles

Readership

Upper-division undergraduates, graduate students, professors, and professionals studying financial intermediation, in particular banking, financial systems, regulation, mutual funds, and interbank competition

Table of contents

List of Contributors

Preface

Introduction to the Series

Section 1: Design of Contracts and Securities

Introduction to Design of Contracts and Securities

Chapter 1: The Design of Debt Contracts

Chapter 2: Subordination Levels in Structured Financing

Section 2: Market Structure and Structure of Financial Markets

Chapter 3: Limit Order Markets: A Survey

Section 3: Financial Intermediary Structure

Introduction to Financial Intermediary Structure

Chapter 4: Bank Structure and Lending: What We Do and Do Not Know

Chapter 5: Optimal Industrial Structure in Banking

Chapter 6: Commercial Banks in Investment Banking

Section 4: Mutual Funds

Introduction to Mutual Funds

Chapter 7: Performance Measurement and Evaluation

Chapter 8: The Behavior of Mutual Fund Investors

Chapter 9: Incentives in Funds Management: A Literature Overview

Section 5: Regulation

Introduction to Regulation

Chapter 10: Consolidation in the U.S. Banking Industry: Is the “Long, Strange Trip” About to End?

Chapter 11: Safety, Soundness, and the Evolution of the U.S. Banking Industry

Chapter 12: What Caused the Bank Capital Buildup of the 1990s?

Chapter 13: Basel II: A Case for Recalibration

Section 6: Competition and Regulation in Banking

Introduction to Competition and Regulation in Banking

Chapter 14: Competition and Regulation in Banking

Chapter 15: Competition and Regulation in the Banking Sector: A Review of the Empirical Evidence on the Sources of Bank Rents

Index

Review quotes

"Boot and Thakor have done a wonderful job in putting together a collection of recent papers on financial intermediation. I particularly like their emphasis on current topics such as structured finance, bank consolidation, and Basel II regulation. A must read for anyone who wants to be informed about the current thinking in this evolving field."—Luc Laeven, International Monetary Fund

"Literally a tour de force with broad and deep coverage of the banking literature from a Finance perspective. A must-read for serious scholars and professionals that offers a clear and direct path to the cutting edge of current research in the field."—Peter Rousseau, Vanderbilt University

"Arnoud Boot and Anjan Thakor have gathered leading researchers working at the intersection of corporate finance and financial intermediation to review and synthesize the latest work in their fields. In addition to providing a concise overview of the state of the art in these important areas, the authors provide a critical assessment of the most promising avenues for future research. This text will likely prove to be an invaluable resource both for current researchers as well as new students of these disciplines."—Peter M. DeMarzo, Stanford University

“This book is an excellent collection of survey papers in the field of financial intermediation, written by leading researchers in the field. Given its broad coverage of topics and accessible style, it is highly recommended reading for students, teachers and professionals who want to refresh their knowledge of the literature, bring themselves to the frontier of the field, and explore open research questions.” —Thorsten Beck, The World Bank

Product details

  • Edition: 1
  • Latest edition
  • Published: July 7, 2008
  • Language: English

About the editors

AT

Anjan V. Thakor

Anjan Thakor is John E. Simon Professor of Finance, Director of Doctoral Programs, and Director of the WFA Center for Finance and Accounting Research, Olin Business School, Washington University in St. Louis. Prior to joining the Olin School, Thakor was The Edward J. Frey Professor of Banking and Finance at the Ross School of Business, University of Michigan, where he also served as chairman of the Finance area. He has served on the faculties of Indiana University, Northwestern University, and UCLA. He has consulted with many companies and organizations, including Whirlpool Corporation, Allision Engine Co., Bunge, Citigroup, RR Donnelley, Dana Corporation, AB-Inbev, Zenith Corporation, Lincoln National Corporation, J.P. Morgan, Landscape Structures, Inc., CIGNA, Borg-Warner Automative, Waxman Industries, Reuters, The Limited, Ryder Integrated Logistics, AT&T, CH2M Hill, Takata Corporation, Tyson Foods, Spartech, and the U.S. Department of Justice. Among many other honors, Dr. Thakor is the winner of the Reid MBA Teaching Excellence Award, Olin School of Business, 2005, and received the Outstanding Teacher in Doctoral Program award for the University of Michigan Business School, April 2003. He has published over 100 papers in leading academic journals in Finance and Economics, including The American Economic Review, Review of Economic Studies, Journal of Economic Theory, The Economic Journal, The RAND Journal of Economics, The Journal of Finance, The Review of Financial Studies, The Journal of Financial Intermediation, and The Journal of Financial Economics. Besides this book, he has published

nine other books. In a paper published in 2017, he was ranked as one of the five most prolific Finance authors during 2005–15.

He is a founding editor of The Journal of Financial Intermediation and one of the founders of The Financial Intermediation Research Society. He is a fellow of The Financial Theory Group. He has served as an expert witness on numerous banking cases and testified in US federal courts on issues related to bank valuation and capital structure.

Affiliations and expertise
John E. Simon Professor of Finance and Director of the PhD Program, Olin School of Business, Washington University, St. Louis, MO, USA

AB

Arnoud W. A. Boot

Arnoud Boot is professor of Corporate Finance and Financial Markets at the University of Amsterdam and research fellow at the Center for Economic Policy Research (CEPR) in London. He is a member of the Financial Economists Roundtable and fellow of the Royal Netherlands Academy of Arts and Sciences (KNAW). Arnoud Boot served on the Inaugural Advisory Scientific Committee of the European Systemic Risk Board (ESRB) and was chairman the Bank Council of the Dutch Central Bank (DNB). Earlier he was on the faculty of the Kellogg School of Management at Northwestern University, and was a partner in the Finance and Strategy Practice at McKinsey & Co. He is the past chairman of the European Finance Association and the Royal Netherlands Economics Association. In addition to his academic activities, Arnoud Boot is advisor to the Dutch government, and consultant to several financial institutions and corporations. He is a non-executive director of several corporations and agencies. His research focuses on corporate finance and financial institutions. His publications have appeared in major academic journals, such as the Journal of Finance, American Economic Review, Review of Financial Studies, and the Journal of Financial Intermediation.
Affiliations and expertise
Professor of Corporate Finance and Financial Markets, University of Amsterdam, The Netherlands

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