IDEAS home Printed from https://ideas.repec.org/p/lev/levppb/8.html

Financing Prosperity in the Next Century, The Changing World of Banking: Setting the Regulatory Agenda

Author

Listed:
  • James R. Barth
  • R. Dan Brumbaugh Jr.

Abstract

Barth and Brumbaugh propose a series of reforms aimed at making bank regulations compatible with the changing financial system. They present evidence to support their contention that change in the market for financial services has reduced the importance of depositories as they have traditionally operated. A dramatic increase in nonbank competition has contributed to a substantial shrinkage in the proportion of total financial assets held by depository institutions. The authors assert that any reforms should take into account the dynamic nature of the financial marketplace. Effective reforms tackling bank regulation must pass a two-part test: They must protect the payments and credit mechanisms in order to promote systemic stability, and they must promote competition within the financial services industry

Suggested Citation

  • James R. Barth & R. Dan Brumbaugh Jr., "undated". "Financing Prosperity in the Next Century, The Changing World of Banking: Setting the Regulatory Agenda," Economics Public Policy Brief Archive 8, Levy Economics Institute.
    • Handle: RePEc:lev:levppb:8
    as

    Download full text from publisher

    File URL: https://www.levyinstitute.org/pubs/ppb8.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hyman P. Minsky & Dimitri B. Papadimitriou & Ronnie J. Phillips & L. Randall Wray, 1992. "Community Development Banks," Economics Working Paper Archive wp_83, Levy Economics Institute.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. Wayne Passmore, 1991. "Can retail depositories fund mortgages profitably?," Finance and Economics Discussion Series 175, Board of Governors of the Federal Reserve System (U.S.).
    4. Mark J. Flannery, 1982. "Deposit insurance creates a need for bank regulation," Business Review, Federal Reserve Bank of Philadelphia, issue Jan/Feb, pages 17-31.
    5. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
    6. Robert C. Merton & Zvi Bodie, 1992. "On the Management of Financial Guarantees," Financial Management, Financial Management Association, vol. 21(4), Winter.
    7. Calomiris, Charles W., 1990. "Is Deposit Insurance Necessary? A Historical Perspective," The Journal of Economic History, Cambridge University Press, vol. 50(2), pages 283-295, June.
    8. R. Dan Brumbaugh & Robert E. Litan, 1991. "Ignoring Economics In Dealing With The Savings And Loan And Commercial Banking Crisis," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 36-53, January.
    9. Ronnie Phillips, 1992. "The 'Chicago Plan' and New Deal Banking Reform," Economics Working Paper Archive wp_76, Levy Economics Institute.
    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. Ronnie J. Phillips, "undated". "Narrow Banking Reconsidered, The Functional Approach to Financial Reform," Economics Public Policy Brief Archive ppb_17, Levy Economics Institute.
    2. Ronnie J. Phillips, 1994. "The Regulation and Supervision of Bank Holding Companies: A Historical Perspective," Economics Working Paper Archive wp_116, Levy Economics Institute.

    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. Magnus Söderberg, 2008. "Uncertainty and regulatory outcome in the Swedish electricity distribution sector," European Journal of Law and Economics, Springer, vol. 25(1), pages 79-94, February.
    2. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    3. Ojo, Marianne, 2006. "The Role of External Auditors and International Accounting Bodies in Financial Regulation and Supervision," MPRA Paper 354, University Library of Munich, Germany, revised Jul 2006.
    4. Sophie Harnay, 2023. "Richard A. Posner: From Public Choice Theory to Economic Analysis of Law (1969-1973)," Working Papers AFED 23-02, Association Francaise d'Economie du Droit (AFED).
    5. Mountain, Bruce R., 2019. "Ownership, regulation, and financial disparity: The case of electricity distribution in Australia," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    6. Schmidt, Dominik & Stöckl, Thomas & Palan, Stefan, 2024. "Voting for insider trading regulation. An experimental study of informed and uninformed traders’ preferences," Journal of Banking & Finance, Elsevier, vol. 169(C).
    7. Lehr, William & Sicker, Douglas, 2017. "Communications Act 2021," 28th European Regional ITS Conference, Passau 2017 169478, International Telecommunications Society (ITS).
    8. Ando, Amy, 1998. "Delay on the Path to the Endangered Species List: Do Costs and Benefits Matter," RFF Working Paper Series dp-97-43-rev, Resources for the Future.
    9. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    10. William C. Mitchell, 1990. "Interest Groups: Economic Perspectives and Contributions," Journal of Theoretical Politics, , vol. 2(1), pages 85-108, January.
    11. Phares, Jonathan & Dobrzykowski, David D. & Prohofsky, Jodi, 2021. "How policy is shaping the macro healthcare delivery supply chain: The emergence of a new tier of retail medical clinics," Business Horizons, Elsevier, vol. 64(3), pages 333-345.
    12. Stephen Hansen & Michael McMahon, 2016. "First Impressions Matter: Signalling as a Source of Policy Dynamics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(4), pages 1645-1672.
    13. Oleh Pasko, 2018. "Theories of Regulation in the Context of Modern Practice of Accounting Regulation," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 37-46, June.
    14. Dallas Burtraw & William Shobe, 2008. "State and Local Climate Policy under a National Emissions Floor," Working Papers 2008-05, Center for Economic and Policy Studies.
    15. Zheying Wu & Robert Salomon, 2017. "Deconstructing the liability of foreignness: Regulatory enforcement actions against foreign banks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 837-861, September.
    16. Christopher Costello & Corbett A. Grainger, 2018. "Property Rights, Regulatory Capture, and Exploitation of Natural Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 441-479.
    17. Jaccard, Mark, 1995. "Oscillating currents : The changing rationale for government intervention in the electricity industry," Energy Policy, Elsevier, vol. 23(7), pages 579-592, July.
    18. Elvio Accinelli & Osvaldo Salas, 2019. "El estado de bienestar como un bien público no excluible / The welfare state as a public good not excludable," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(2), pages 243-273.
    19. Daniel J. Smith & Macy Scheck, 2023. "Examining the public interest rationale for regulating whiskey with the pure food and drugs act," Public Choice, Springer, vol. 196(1), pages 85-122, July.
    20. Chong, Beng-Soon & Liu, Ming-Hua & Altunbas, Yener, 1996. "The impact of universal banking on the risks and returns of Japanese financial institutions," Pacific-Basin Finance Journal, Elsevier, vol. 4(2-3), pages 181-195, July.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:lev:levppb:8. 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: Lindsey Carter (email available below). General contact details of provider: https://www.levyinstitute.org .

    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.