In the previous posts in this series on the evolution of banks and financial intermediaries, my colleagues and I considered the extent to which banks still play a central role in financial intermediation, given the rise of the shadow banking system.
As noted in the introduction (add link) to this series, over the past two decades financial intermediation has evolved from a traditional, bank-centered system to one where nonbanks play an increasing role. For my contribution (add link) to the series, I document how the sources of bank holding companies’ (BHC) income have evolved.
When market observers talk about a “bank,” they are generally not referring to a single legal entity.
As the previous posts have discussed, financial intermediation has evolved over the last few decades toward shadow banking.
As Nicola Cetorelli observes in his introductory post, securitization is a key element of the evolution from banking to shadow banking.
In yesterday’s post, Nicola Cetorelli argued that while financial intermediation has changed dramatically over the last two decades, banks have adapted and remained key players in the process of channeling funds between lenders and borrowers.
In this post, we examine a number of important housing market “vital signs” that collectively help to indicate the health status of local markets at the county level.
It used to be simple: Asked how to describe financial intermediation, you would just mention the word “bank.”
In October I974, with consumer inflation running at more than 10 percent annually, President Gerald Ford gave a now famous speech in which he proclaimed: “There is only one point on which all advisers have agreed: We must whip inflation right now.”
For many years, economists have struggled to explain the “equity premium puzzle”—the fact that the average return on stocks is larger than what would be expected to compensate for their riskiness.