The Post-Crisis Evolution of Banks and Markets

Download or read book The Post-Crisis Evolution of Banks and Markets written by Arnoud W. A. Boot and published by . This book was released on 2018 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper briefly reviews papers presented at a JFI-Washington University Conference on the post-crisis evolution of banks and financial markets that are appearing in a special issue of the JFI. The major themes represented by the papers in this issue have significantly advanced our understanding of the post-crisis blurring of boundaries between banks and markets and the risk implications of this phenomenon. They have highlighted the fact that to better grasp how risks in the financial system are evolving, we need to understand the unique aspects of banks' funding model which relies heavily on customers who do not wish to be exposed to the bank's credit risk, trends in both formal and informal financing and how they impact economic growth, the role of collateral and the systemic risk implications of how it is deployed in the economy (especially through mechanisms like rehypothecation), the trading of asset-backed securities emerging from the securitization of bank loans, and bank culture. These papers raise a host of interesting questions for future research.