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Investment banking: linkages to the real economy and the financial system

Author

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  • Kushal Balluck

    (Bank of England)

Abstract

Investment banks play a key role in capital markets and contribute to the efficient functioning of financial markets. As demonstrated in the recent financial crisis, however, investment banks can create and propagate risks in the financial system given their scale, as well as the interconnected and complex nature of their activities. Recognising investment banks’ systemic importance, a number of international regulatory initiatives have come into force since the onset of the recent financial crisis.

Suggested Citation

  • Kushal Balluck, 2015. "Investment banking: linkages to the real economy and the financial system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 4-22.
    • Handle: RePEc:boe:qbullt:0162
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    References listed on IDEAS

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    Cited by:

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    4. Zijun Liu & Stephanie Quiet & Benedict Roth, 2015. "Banking sector interconnectedness: what is it, how can we measure it and why does it matter?," Bank of England Quarterly Bulletin, Bank of England, vol. 55(2), pages 130-138.
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