JeanCharles Rochet Boeken

Twenty years ago, most banking courses focused on either management or monetary aspects of banking, with no connecting. Since then, a microeconomic theory of banking has developed, mainly through a switch of emphasis from the modeling of risk to the modeling of imperfect information. This asymmetric information model is based on the assumption that different economic agents possess different pieces of information on relevant economic variables, and that they will use the information for their own profit. The model has been extremely useful in explaining the role of banks in the economy. It has also been useful in pointing out structural weaknesses of the banking sector that may justify government intervention--for example, exposure to runs and panics, the persistence of rationing in the credit market, and solvency problems.Microeconomics of Banking provides a guide to the new theory. Topics include why financial intermediaries exist, the industrial organization approach to banking, optimal contracting between lenders and borrowers, the equilibrium of the credit market, macroeconomic consequences of financial imperfections, individual bank runs and systemic risk, risk management inside the banking firm, and bank regulation. Each chapter ends with a detailed problem set and solutions.

The book examines the catastrophic failures of major insurance companies in the 1990s, igniting a critical discussion on policyholder protection. It critiques existing insurance regulation and proposes a transformative approach that mirrors the governance structures of non-financial firms, aiming to enhance stability and accountability in the insurance sector. Through detailed analysis of specific case studies, it seeks to provide innovative solutions to prevent future collapses and safeguard consumer interests.

The financial crisis that began in 2007 in the US swept the world, producing substantial bank failures and forcing unprecedented state aid for the crippled global financial system. This book draws critical lessons from the causes of the crisis and proposes important regulatory reforms.

Este libro ofrece un análisis actualizado de las teorías microeconómicas sobre la intermediación financiera, combinando rigor y accesibilidad. Aborda temas clave como el papel de los bancos en la economía, la gestión del riesgo y la regulación, siendo una lectura esencial para quienes estudian economía bancaria.