IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v10y1992i3p104-112.html

What Should Banks Really Do?

Author

Listed:
  • LAWRENCE J. WHITE

Abstract

With banking currently in turmoil, a new formula for bank structure and activities, for deposit insurance, and for bank regulation is necessary. This paper reviews the dilemmas of the current structure of banking in the United States and explains how the banking sector arrived at its current state of crisis. It then suggests three alternative formulas, along with their advantages and disadvantages, that could provide the future framework for banking, deposit insurance, and regulation.

Suggested Citation

  • Lawrence J. White, 1992. "What Should Banks Really Do?," Contemporary Economic Policy, Western Economic Association International, vol. 10(3), pages 104-112, July.
    • Handle: RePEc:bla:coecpo:v:10:y:1992:i:3:p:104-112
    DOI: 10.1111/j.1465-7287.1992.tb00240.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1992.tb00240.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1992.tb00240.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keeley, Michael C, 1990. "Deposit Insurance, Risk, and Market Power in Banking," American Economic Review, American Economic Association, vol. 80(5), pages 1183-1200, December.
    2. Edwards, Linda N & Edwards, Franklin R, 1974. "Measuring the Effectiveness of Regulation: The Case of Bank Entry Regulation," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 445-460, October.
    3. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Win), pages 14-23.
    4. George J. Benston & George G. Kaufman, 1988. "Risk and solvency regulation of depository institutions: past policies and current options," Staff Memoranda 88-1, Federal Reserve Bank of Chicago.
    5. White, Lawrence J, 1989. "The Reform of Federal Deposit Insurance," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 11-29, Fall.
    6. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    7. John H. Boyd & Arthur J. Rolnick, 1988. "A case for reforming federal deposit insurance," Annual Report, Federal Reserve Bank of Minneapolis.
    8. Rolnick, Arthur J & Weber, Warren E, 1983. "New Evidence on the Free Banking Era," American Economic Review, American Economic Association, vol. 73(5), pages 1080-1091, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lawrence J. White, 1993. "What Should Banks Really Do?: Reply," Contemporary Economic Policy, Western Economic Association International, vol. 11(4), pages 111-113, October.
    2. George S. Berger, 1993. "What Should Banks Really Do?: Comment," Contemporary Economic Policy, Western Economic Association International, vol. 11(4), pages 107-110, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Apergis, Emmanuel & Apergis, Iraklis & Apergis, Nicholas, 2019. "A new macro stress testing approach for financial realignment in the Eurozone," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 61(C), pages 52-80.
    2. Stiglitz, Joseph, 1992. "The role of the State in Financial Markets," Institute for Policy Reform Working Paper Series 294819, Institute for Policy Reform.
    3. Douglas D. Evanoff & Larry D. Wall, 2000. "Subordinated debt and bank capital reform," FRB Atlanta Working Paper 2000-24, Federal Reserve Bank of Atlanta.
    4. repec:ejw:journl:v:17:y:2020:i:1:p:98-151 is not listed on IDEAS
    5. George J. Benston & George G. Kaufman, 1997. "FDICIA after Five Years," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 139-158, Summer.
    6. Ernest Dautovic, 2019. "Has Regulatory Capital Made Banks Safer? Skin in the Game vs Moral Hazard," Cahiers de Recherches Economiques du Département d'économie 19.03, Université de Lausanne, Faculté des HEC, Département d’économie.
    7. Paul Fisher & Paul Grout, 2017. "Competition and prudential regulation," Bank of England working papers 675, Bank of England.
    8. Berger, Allen N. & Boot, Arnoud W.A., 2024. "Financial intermediation services and competition analyses: Review and paths forward for improvement," Journal of Financial Intermediation, Elsevier, vol. 57(C).
    9. Garci­a-Marco, Teresa & Robles-Fernández, M. Dolores, 2008. "Risk-taking behaviour and ownership in the banking industry: The Spanish evidence," Journal of Economics and Business, Elsevier, vol. 60(4), pages 332-354.
    10. Lammertjan Dam & Michael Koetter, 2011. "Bank bailouts, interventions, and moral hazard," Proceedings 1131, Federal Reserve Bank of Chicago.
    11. Guo, Lin, 1999. "When and why did FSLIC resolve insolvent thrifts?," Journal of Banking & Finance, Elsevier, vol. 23(6), pages 955-990, June.
    12. Arthur J. Rolnick, 1993. "Market disciplines as a regulator of bank risk," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 37, pages 96-110.
    13. Vuong Thao Tran & Hoa Nguyen, 2024. "Competition, liquidity creation and bank stability," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 2111-2146, June.
    14. Hesna Genay, 1998. "Assessing the condition of Japanese banks: how informative are accounting earnings?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 22(Q IV), pages 12-34.
    15. Moreno, Diego & Takalo, Tuomas, 2021. "Precision of Public Information Disclosures, Banks’ Stability and Welfare," Research Discussion Papers 3/2021, Bank of Finland.
    16. Ebrahimi Kahou, Mahdi & Lehar, Alfred, 2017. "Macroprudential policy: A review," Journal of Financial Stability, Elsevier, vol. 29(C), pages 92-105.
    17. Sangkyun Park, 2024. "Mutual insurance for catastrophe hazards: Case of deposit insurance," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 53(1), February.
    18. Frederick T. Furlong & Michael C. Keeley, 1986. "Bank regulation and the public interest," Economic Review, Federal Reserve Bank of San Francisco, issue Spr, pages 55-71.
    19. Viral V. Acharya, 2003. "Is the International Convergence of Capital Adequacy Regulation Desirable?," Journal of Finance, American Finance Association, vol. 58(6), pages 2745-2782, December.
    20. Ronald Fischer & Nicolás Inostroza & Felipe J. Ramírez, 2013. "Banking Competition and Economic Stability," Documentos de Trabajo 296, Centro de Economía Aplicada, Universidad de Chile.
    21. Usman Bashir & Shoaib Khan & Abdulhafiz Jones & Muntazir Hussain, 2021. "Do banking system transparency and market structure affect financial stability of Chinese banks?," Economic Change and Restructuring, Springer, vol. 54(1), pages 1-41, February.

    More about this item

    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:bla:coecpo:v:10:y:1992:i:3:p:104-112. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    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.