IDEAS home Printed from https://ideas.repec.org/a/ris/jofipe/0058.html
   My bibliography  Save this article

Is Basel turning banks into public utilities?

Author

Listed:
  • Schiff, John M.

    (NYU Stern School of Business)

Abstract

This paper looks at the effects of Basel III on the long-run profitability prospects of banks. It is argued that the new restriction on maturity mismatching and leverage will mitigate the "special" role banks play in the economy. Indeed, it will turn them into over-regulated public utilities with limited profitability and ability to innovate. The major thesis is that regulators appear to have forgotten that banks are "special" in terms of the economic benefits they provide to an economy, and that such benefits enhance social welfare.

Suggested Citation

  • Schiff, John M., 2015. "Is Basel turning banks into public utilities?," Journal of Financial Perspectives, EY Global FS Institute, vol. 3(1), pages 04-12.
    • Handle: RePEc:ris:jofipe:0058
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Basel III; regulations;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jofipe:0058. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ms Alina Stefan (email available below). General contact details of provider: http://www.ey.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.