THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS

Аннотация

In past editions, the chapter on the structure of the banking industry was followed by the chapter on banking regulation. This ordering no longer makes sense in the aftermath of the subprime financial crisis, because nonbank financial institutions like investment banks have for the most part disappeared as free-standing institutions and are now part of banking organizations. To reflect the new financial world that we have entered, we first discuss the financial industry as a whole and then look at the specifics of how the now more broadly based banking industry is structured. To do this, we have placed the chapter on regulation before the chapter on the structure of the banking industry and have rewritten it to focus less on bank regulation and more on regulation of the overall financial system.