How Should Financial Institutions and Markets be Structured?: Analysis and Options for Financial System Design

This paper analyzes the consequences of alternative financial structures for financial efficiency and stability. The focus is on the organizational structure of banks. Alternative bank structures range from 'narrow banks' to broad 'universal banks.' Each banking structure is assessed in its ability to satisfy the objectives of efficiency and stability in the financial system stability, economies of scale and scope, competition, avoiding regulatory capture, conflicts of interest and political manipulation, corporate control and management of financial distress, and monetary control. No one reform is appropriate for all countries, and no single reform guarantees that the objectives will be attained or maintained.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	George G. Kaufman
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Financial Market, Policy Evaluation, financial institutions;WP-338;financial system;banking structures,
Online Access:	http://dx.doi.org/10.18235/0011592 https://publications.iadb.org/en/how-should-financial-institutions-and-markets-be-structured-analysis-and-options-financial-system
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