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OUP CORRECTED PROOF – FINAL, 08/29/2019, SPi
t h e ox f o r d h a n d b o o k o f
BA N K I NG
THE Oxford Handbook of
BANKING
Third Edition
Edited by
ALLEN N. BERGER,
PHILIP MOLYNEUX,
and
JOHN O.S. WILSON
1
1
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For Mindy (Allen N. Berger)

For Delyth, Alun, Gareth, Gethin, Catrin,
Lois, and Rhiannon (Philip Molyneux)
In memory of my mother, Jean Wilson (John O.S. Wilson)
Preface
Ten years on from the Global Financial Crisis, banks are still adapting to new, more
constrained operating and regulatory environments. Banks now hold more capital and
liquidity than they did prior to the crisis, and have had regulatory limits placed upon
riskier activities. Large banks have reduced their international activities in order to
focus on domestic and select overseas markets.
In the US, Europe, and elsewhere banks are now subject to: new capital, liquidity,
and tax regulations; resolution regimes; stress tests; bail-in mechanisms; corporate
governance; executive compensation and disclosure rules; along with enhanced super-
visory oversight, particularly for the thirty globally systemically important banks, the
G-SIBs. FinTech developments are creating opportunities for both incumbent banks
and new competitors in a diverse array of areas ranging from online banking, robo
advisory services and distributed ledger technology (Blockchain) to marketplace or
peer-to-peer lending platforms, as well as InsureTech and RegTech. There are now over
2,000 cryptocurrencies in existence, the most well known being Bitcoin with a 54 percent
share of the total cryptocurrency market capitalization. These developments present
banks with competitive challenges from the entry of technology firms and opportunities
to redesign business models, offer new services, and improve efficiency. For example,
legacy systems are likely to be gradually replaced with more technology-based systems
using distributed-ledger technology and Blockchain.
The more competitive environment and stricter regulation have affected bank profits.
Banks have to spend more on regulatory compliance and organizational restructuring.
As of this writing, many large European banks are generating single digit returns that
often do not cover their cost of capital, leading to a destruction of shareholder value. The
sluggish performance of the European economy following the European Sovereign
Debt Crisis presents further challenges. The Eurozone set its plans out to create a
European Banking Union in 2012 in order to establish a more robust framework for
dealing with troubled banks, although parts of the new regime (including a Euro-wide
deposit insurance scheme) are yet to be fully implemented.
Many of the aforementioned pressures continue to have similar influences on bank-
ing business globally. The slowdown in economic growth, the low (and in some cases
negative) interest rate environment, coupled with regulatory measures designed to
improve safety and soundness have generally acted as a drag on bank performance.
Markets remain volatile and both banks and regulators continue to grapple with the
complexities of measuring and managing a host of systemic as well as bank-level risks.
Of particular recent interest has been the accounting treatment of credit risk indicators
viii preface
such as loan loss provisions and reserves and the fair valuation of financial instruments,
as well as issues related to the transparency of off-balance-sheet activities. Uncertainty
continues to heighten. Trade wars, Brexit, Euro area challenges (such as Italian indebt-
edness), the possible end of the bull run in equity markets, the slowdown in emerging
markets (China in particular), political polarization (both domestic and international),
Middle East tensions, and other factors all add to uncertainty and a less favorable global
operating environment for banks.
This Third Edition seeks to evaluate many of the aforementioned areas and is a
substantial update on the Second Edition. There are new chapters on community and
mutual banking; Islamic banking; microfinance; modern central banking; bank bail-ins
and bailouts; deposit insurance; bank capital; financial literacy and consumer protection;
and banking in China, and Australia and New Zealand. Developments in FinTech are
discussed in the chapters on small business lending, payments, and financial innovation.
General themes relating to the impact of the new regulatory environment and the
impact of banks on the real economy are also substantially covered in specific chapters,
as well as significant updates to the other topics covered in the Second Edition.
Allen N. Berger
Philip Molyneux
and John O.S. Wilson
Acknowledgements
First, and most important, we wish to thank the contributors to the Handbook. We are
delighted to have brought together such an outstanding set of research experts from aca-
demic and policy arenas across Europe, North America, South America, Asia, and
Australasia. These experts have shown a high level of commitment and perseverance to
the project from beginning to end. Without their expertise, dedication, and efficiency in
producing scholarly banking chapters this Handbook would never have been possible.
The production of this Handbook has also relied heavily on the exceptional enthusi-
asm and commitment of Oxford University Press, most notably Adam Swallow, pub-
lisher for Economics and Finance, who was crucial in helping us kick-start the project.
Oxford University Press delegates and a number of anonymous referees also played an
important role in advising on the shape of the Handbook.
We would like to thank and acknowledge Verity Rimmer and also Katie Bishop, whose
advice was invaluable and who was always on hand to help and worked closely with us
throughout the entire process. The team in New York also played a valuable role, and so
we’d like to thank Viviana Lachmund and Laura Heston. Manikandan Chandrasekaran
and Jen Hinchliffe also played a crucial role toward the end of the project. We would
also like to acknowledge the support of our home institutions: the Moore School of
Business at the University of South Carolina; the College of Business Administration at
the University of Sharjah; and the Centre for Responsible Banking & Finance at the
Management School, University of St Andrews. We would especially like to thank
Dorothy Campbell who provided excellent assistance in preparing the final manuscript
prior to submission.
During the writing of this Handbook, Fernando José Cardim de Carvalho, Emeritus
Professor at UFRJ (Federal University of Rio de Janeiro, Brazil) and Senior Fellow at the
Levy Economics Institute, Bard College in New York passed away on the 16th of May,
2018. He was 64 years old. Fernando was one of Brazil’s most revered economists.
A leader of the post-Keynesian economists in Brazil, he was an associate editor of the
Journal of Post Keynesian Economics. Among his many published works, he authored
Mr Keynes and the Post Keynesians (Edward Elgar, 1992), and Liquidity Preference and
Monetary Economics (Routledge, 2015). Fernando was an active and leading voice in
discussions about money and financial systems and was writing until the time of his
passing. Fernando wrote the excellent section on Latin American Development Banks:
Some New Developments or an Impasse? in Chapter 37 of this Handbook, Banking in
Latin America: Developments and Prospects. As always, Fernando provided valuable
x acknowledgements
insights, expert analysis, and perfect context, which is indicative of his great intellect
and contribution to knowledge.
Finally, we would like to thank our families and friends for their encouragement and
patience over the last decade while completing the three editions of the Handbook.
Their support is always very much appreciated.
Contents
List of Figuresxv
List of Tablesxix
List of Abbreviationsxxiii
List of Contributorsxxxi
1. Banking: A Decade on from the Global Financial Crisis 1

Allen N. Berger, Philip Molyneux, and John O. S. Wilson
PA RT I T H E T H E ORY OF BA N K I N G
2. The Roles of Banks in Financial Systems 39
Franklin Allen, Elena Carletti, and Xian Gu
3. Commercial Banking and Shadow Banking: The Accelerating

Integration of Banks and Markets and its Implications
for Regulation 62
Arnoud W. A. Boot and Anjan V. Thakor
4. Corporate Complexity and Systemic Risk: A Progress Report 95

Jacopo Carmassi and Richard J. Herring
5. Corporate Governance and Culture in Banking 131

Jens Hagendorff
6. Private Information and Risk Management in Banking 153

Linda Allen and Anthony Saunders
7. Creation and Regulation of Bank Liquidity 181

Christa H. S. Bouwman
PA RT I I AC T I V I T I E S A N D P E R F OR M A N C E
8. The Performance of Financial Institutions: Modeling,
Evidence, and some Policy Implications 229
Joseph P. Hughes and Loretta J. Mester
xii contents
9. Technological Change and Financial Innovation in Banking:

Some Implications for FinTech 262
W. Scott Frame, Larry Wall, and Lawrence J. White
10. Payments 285

David Humphrey
11. Community Banking Institutions: Commercial Banks,

Savings Banks, Cooperative Banks, and Credit Unions 321
Dasol Kim and Donal McKillop
12. Islamic Banking: A Review of the Empirical Literature

and Future Research Directions 359
Narjess Boubakri, Ruiyuan (Ryan) Chen, Omrane Guedhami,
and Xinming Li
13. Can We Improve the Impact of Microfinance? A Survey

of the Recent Literature and Potential Avenues for Success 404
Robert Lensink and Erwin Bulte
14. Small Business Lending: The Roles of Technology and

Regulation from Pre-crisis to Crisis to Recovery 431
Allen N. Berger and Lamont K. Black
15. Residential Mortgages 470

Andreas Lehnert and Alex Martin
16. Securitization 503

Barbara Casu and Anna Sarkisyan
17. Shadow Banking 530

Tobias Adrian, Adam B. Ashcraft, Peter Breuer,
and Nicola Cetorelli
PA RT I I I R E G U L ATORY A N D P OL IC Y
P E R SP E C T I V E S
18. Modern Central Banking 573
Frederic S. Mishkin
19. Lender of Last Resort: A New Role for the Old Instrument 602
Xavier Freixas and Bruno M. Parigi
contents xiii
20. Bank Bailouts and Bail-Ins 630

Raluca A. Roman
21. Bank Runs and Moral Hazard: A Review of

Deposit Insurance 685
Deniz Anginer and Asli Demirgüç-Kunt
22. Bank Capital Requirements after the Financial Crisis 707

Mark E. Van Der Weide and Jeffery Y. Zhang
23. Market Discipline in Regulation: Pre and Post Crisis 736

Mark J. Flannery and Robert R. Bliss
24. Competition in the Banking Sector 776

Hans Degryse, Paola Morales-Acevedo,
and Steven Ongena
25. Behavioral Economics, Financial Literacy, and Consumers’

Financial Decisions814
Gregory Elliehausen
PA RT I V M AC ROE C ON OM IC
P E R SP E C T I V E S
26. Systemic Risk in Banking after the Great Financial Crisis 847
Olivier de Bandt and Philipp Hartmann
27. Hardy Perennials: Banking Crises Around the World 885

Gerard Caprio Jr. and Patrick Honohan
28. Bank Failures, The Great Depression, and Other

“Contagious” Events 910
Charles W. Calomiris
29. Banking Globalization: Cross-border Entry, Complexity,

and Systemic Risk 928
Claudia M. Buch and Gayle L. DeLong
30. Banking and Real Economic Activity: Foregone Conclusions

and Open Challenges 953
Nicola Cetorelli and Michael Blank
xiv contents
PA RT V BA N K I N G SYS T E M S
A RO U N D T H E WOR L D
31. Banking in the United States 977
Robert DeYoung
32. Banking in Europe: Integration, Reform, and the Road to

a Banking Union1000
John Goddard, Philip Molyneux, and John O.S. Wilson
33. Banking in Japan: A Post-global Financial Crisis Perspective 1033

Hirofumi Uchida and Gregory F. Udell
34. Banking in Africa 1076

Thorsten Beck, Robert Cull, and Patricio Valenzuela
35. Banking in China 1113

Leora Klapper, María Soledad Martínez Pería, and Bilal Zia
36. Banking in the Transition Countries of Central, Southern,

and Eastern Europe and the Former Soviet Union 1132
Zuzana Fungáčová, Iftekhar Hasan, Laura Solanko,
and Paul Wachtel
37. Banking in Latin America: Developments and Prospects 1152

Fernando J. Cardim de Carvalho, Luiz Fernando de Paula,
and Jonathan Williams
38. Banking in Australia and New Zealand—Geographic Proximity,

Market Concentration, and Banking Integration 1190
Fariborz Moshirian and Eliza Wu
Index 1215
List of Figures
2.1 Size of the Financial Markets by Country/Region 2001 and 2016,

Percentage of GDP 40
2.2 Portfolio Allocation of Households and Non-financial Corporations
(Average 1997–2016), Percentage of GDP 41
5.1 Firm Leverage [Liabilities/(Liabilities+Equity)], 2007 135
5.2 A Typical Cash Bonus Function 137
7.1 Total Reserves, Required Reserves, and Vault Cash Over Time 192
7.2 Capital Ratios Over Time (1934–2017) 194
7.3 Traditional Banking vs. Securitization in the Shadow Banking System 199
7.4 Comparison of Basel II and Basel III Capital Requirements 203
8.1 Scale-Related Diversification and Risk-Return Frontiers 232
11.1 Number of US Banks by Institution Type 342
11.2 Mergers & Acquisitions by Institution Type 345
11.3 Bank Entry and Exit Rates by Institution Type 347
12.1 Shares of Global Islamic Banking Assets (1H2017) 362
12.2 Number of Islamic Banks Reporting to Bankscope 363
12.3 Islamic Banks’ Total Assets (million $) 363
12.4 Share of Islamic Banks’ Assets in Total Banking Sector Assets (%) 364
12.5 Share of Islamic Banks’ Assets in Total Banking Sector by Country
(1H2016)364
12.6 World Islamic Population 1990, 2010, and 2030 (millions) 365
13.1 Microfinance Services Classified by Objective and Delivery Mode 422
15.1 Credit Scores at Mortgage Origination 473
15.2 Total US Mortgage Foreclosure Starts 474
15.3 US House Price and Mortgage Debt Growth 478
15.4 US Mortgage Rates 479
15.5 Refinancing Incentive and Refinancing Volume 485
15.6 Issuance of US Mortgage-Backed Securities 486
15.7 Holders of US Residential Mortgage Debt 487
xvi list of figures
15.8 Primary-Secondary Mortgage Market Spread 488

15.9 US Subprime Mortgage Delinquency Rates 489
15.10 US Household Assets 492
15.11 European House Price Indices 493
16.1 US Securitization Outstanding 506
16.2 European Securitization Outstanding 510
16.3 European Securitization Issuance by Country (2017) 510
16.4 Securitization Transaction (Simplified) 512
16.5 Credit Enhancements 517
17.1 Share of Assets of Non-bank Financial Intermediaries 533
17.2 Average Annual Growth Rate of OFI Sector 2011–15 and 2016 534
17.3 The Credit Intermediation Chain 536
17.4 Composition of Liabilities of Financial Business 538
17.5 US Money Market Fund Assets 551
17.6 “Riskier” US Residential Mortgage-Backed Securities 553
17.7 US Mortgage-Backed Securities: Agency vs. Non-Agency 555
17.8 Non-bank Credit Intermediation in China 556
17.9 Depository Institution Claims on Other Financial Institutions in China 557
17.10 US Leveraged Loans: Outstanding Volume and Spreads 559
17.11 US Leveraged Loans: Issuance of Lowly Rated Debt (B-Rated or
Lower)560
17.12 US Leveraged Loans: Average Debt Multiples 560
19.1 Central Banks’ Total Assets 618
19.2 Central Banks’ Key Intervention Rates 619
20.1 TARP Capital Injections to Banks 636
21.1 Number of Countries with Explicit Deposit Insurance 689
21.2 Percentage of Countries with Explicit Deposit Insurance 690
21.3 Percentage of Bank Liabilities Covered by Deposit Insurance 691
21.4 Percentage of Countries that have Increased Coverage as a Result of the
Financial Crisis 692
21.5 Percentage of Countries that Charge Risk-adjusted Premiums 700
22.1 US Bank Capital Ratio, 1834–2014 713
22.2 Increase in the Quantity of Capital (Tier 1 Ratio of G-SIBs) 730
22.3 Increase in the Quantity of Capital (Leverage Ratio of G-SIBs) 730
22.4 Increase in the Quality of Capital (Time Series) 731
list of figures xvii
22.5 Increase in the Quality of Capital (Cross Sections) 731

22.6 Changes in the Distribution of Capital 732
29.1 Bank Acquisitions (by Year) 1985–2017 930
29.2 Percentage of Bank Acquisitions that Are Cross-Border (by Year)
1985–2017931
29.3 Bank Acquisitions (by Region and Year) 1985–2017 933
29.4 Percentage of Cross-Border Bank Acquisitions (by Region and Year)
1985–2017934
31.1 Number of Commercial Banks and Commercial Bank Branch Offices
in the US between 1940 and 2017 982
31.2 Aggregate Return-on-Equity and Equity-to-Assets Ratios for the US
Commercial Banking Industry, 1934 to 2017 984
31.3 Merged Banks, Newly Chartered Banks, and Failed Banks, Expressed
as a Percentage of the US Commercial Bank Population, each Year
from 1970 to 2017 985
31.4 Strategic Map of the Banking Industry 988
31.5 The Changing Distribution of US Commercial Banks by Asset Size
(in 2009 dollars) between 1980 and 2017 992
31.6 Commercial Banks, Savings Banks, and Credit Unions in the US in 2017 993
32.1 Price-based and Quantity-based Financial Integration Composite
Indicators1007
33.1 Composition of Financial Assets in Japan by Holder 1040
33.2 Loans Outstanding of Private Banks 1041
33.3 Profits and Losses for Ordinary Banks 1064
33.4 Diffusion Index for Lending Attitude of Financial Institutions 1065
34.1 Aggregate Financial Development in International Comparison, 2015 1080
34.2 Private Credit to GDP across Low- and Lower-middle-income African
Countries, 2015 1081
34.3 Private Credit to GDP (%) 1081
34.4 Access to and use of Financial Services in International Comparison,
2010–171082
34.5 Short-term Loans as Percentage of Total Loans 1084
34.6 Private Credit/GDP (%) in African Countries 2011–15, Actual vs.
Predicted Values 1085
34.7 Use of Formal Account and Loan Services across Firm Size Groups in
International Comparison, 2013–17 1090
34.8 Account Penetration across Regions, 2011, 2014, and 2017 1092
xviii list of figures
34.9 Gaps in Account Penetration in Sub-Saharan Africa 1094

34.10 Gaps in Mobile Money Account Penetration in Sub-Saharan Africa 1095
35.1 Chinese Financial Sector Assets Over Time 1114
35.2 Financial Sector Size across Countries in US dollars as of 2016 1114
35.3 Credit-to-GDP Gap for China and Other Countries 1115
35.4 Evolution of Financial Institutions in Asset Share 1116
35.5 The Rise of Shadow Banking 1119
35.6 Wealth Management Products, 2007–17 1119
35.7 Barriers to Account Ownership (% of Adults with No Account) 1128
38.1 Asset Composition of Banks in Australia, NZ, and Globally 1198
List of Tables
4.1 Size and Complexity of G-SIBs, 2018 vs. 2013 (G-SIBs Ranked by Total
Assets 2017) 101
4.2 Geographical Diversification of G-SIBs and Subsidiaries in OFCs,
2018 vs. 2013 (G-SIBs Ranked by Number of Countries in 2018) 105
4.3 Breakdown by Industry of Subsidiaries of G-SIBs, October 2018
(in bold) and May 2013 107
4.4 Number of Subsidiaries of US G-SIBs According to the FED/NIC
Data Set, 2002–18 112
4.5 Public Sections of Resolution Plans of the 8 US G-SIBs (July 2017):
Key Selected Information 126
6.1 List of G-SIBs, November 2017 176
7.1 Countercyclical Capital Buffers 204
7.2 G-SIB Surcharges 206
10.1 Payment Instrument Use, 2016 289
11.1 Cooperative Banks and National Associations for Cooperative Banks 330
11.2 Institution-Type Composition by Size Category 343
12.1 Differences between Islamic and Conventional Banking Systems 367
12.2 Summary of Major Sharia-Compliant Financial Contracts 368
12.3 Stylized Balance Sheet of a Conventional Bank 370
12.4 Stylized Balance Sheet of an Islamic Bank 371
12.5 Comparing Islamic and Conventional Banks 373
12.6 Comparing Islamic and Conventional Banks—Controlling for Bank
Characteristics374
12.7 Comparing Islamic and Conventional Banks During Crises 378
12.8 The Effects of Islamic Banks on Bank Liquidity Creation 384
12.9 Islamic Bank and Stock Illiquidity 385
13.1 Impact of Business Training on Business Outcomes 423
16.1 US Securitization Issuance 508
17.1 A Stylized View of the Structural Characteristics of Credit
Intermediation541
xx list of tables
19.1 LOLR Actions by the FED in the 2007–9 Crisis 621

22.1 Balance Sheet 708
22.2 Minimum Requirements Under Basel II and Basel III 717
22.3 Basel I Risk Weights 718
22.4 Risk Weights Under Basel II 719
22.5 Capital Conservation Buffer (CCB) 721
22.6 Historical CCyB Add-ons 723
22.7 Summary of Capital Buffers 723
22.8 G-SIBs in 2017 724
22.9 Basel III (Method 1) G-SIB Capital Surcharges 725
22.10 Method 1 vs. Method 2 (2016) 725
22.11 Comparison of Leverage Ratios, 2017:Q4 727
23.1 Prescriptive Information Disclosure, Pillar 3 in Basel III 759
23.A1 Percentage of Actual/Fitted, “Negative”/“Positive” Observations 765
24.1 Evolution of Research on the Impact of Bank Concentration and
Competition on Bank Performance 779
29.1 Cross-Border Bank Acquisitions by Geographic Region, 1985–2017 932
31.1 Distribution of Financial Assets in the US Across Private Sector
Financial Intermediaries in 1980 and 2017 978
31.2 Comparing the Average Values of Selected Financial Ratios between
434 Small and 56 Large US Commercial Banks in 2017 990
31.3 Largest US Banking Companies as of December 31, 2017 by Total
Assets ($ billions) 994
31.4 Global Investment Banking Revenue in 2017 994
32.1 Number of Credit Institutions and Foreign Branches 1008
32.2 Total Assets of Domestic Banking Groups and Foreign-Controlled
Subsidiaries and Branches 1009
32.3 Concentration in European Banking Herfindahl index for credit
institutions and share of total assets of the five largest
credit institutions1010
32.4 Bank Profitability—Return on Equity (%) 1015
33.1 Financial Assets in Japan by Holder 1035
33.2 Assets and Liabilities of the Japanese Corporate, Government, and
Household Sectors 1037
33.3 Descriptive Statistics for Different Bank Types in Japan 1042
33.4 Four Main Types of Bank in Japan 1049
34.1 Decomposition of Interest Rate Spreads in Uganda in 2008 1087
34.2 Explaining Overhead Costs in Africa 1088
list of tables xxi
34.3 Account Penetration over Time and across Countries 1093

34.4 Mobile Phone use in Financial Transactions in Africa by Country, 2017 1102
35.1 Bank Performance Across Countries, 2016 1117
36.1 Deposit Money Banks’ Assets to GDP (%), Average for the Region 1144
36.2 Balance-Sheet Structure of Banking Sectors at end 2016 1146
37.1 Market Concentration and Foreign Bank Penetration 1156
37.2 Financial Depth and Credit Indicators 1165
37.3 Interest Rates, % 1167
37.4 Margins, Diversification, Liquidity, and Profitability, % 1168
37.5 Bank Capital, Stability, Profitability, and Leverage 1174
37.6 Cost Structure and Efficiency 1175
37.7 Bank Solvency and Asset Quality 1181
38.1 Size and Importance of the Financial Services Industry in Australia
and New Zealand 1192
38.2 Overall Industry Concentration and Sectoral Concentration 1193
38.3 Bank Funding Sources in Australia and New Zealand, and Globally 1196
38.4 Sector Concentration by Bank Type in Australia and Loan
Type in all Australian and New Zealand Banks 1199
38.5 Cost-to-Income Ratios 1202
38.6 Profitability 1203
38.7 Capital Requirements 1207
List of Abbreviations
AAOIFI Accounting and Auditing Organization for Islamic Financial Institutions

ABCP asset-backed commercial paper
ABL asset-based lending
ABS asset-backed securities
ABSPP asset-backed securities purchase program
ACH Automated Clearing House
ADIs Authorised Deposit-taking Institutions
AIG American International Group
A-IRB advanced internal ratings-based approach
AMA advanced measurement approach
AMC asset management company
AMLF Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity
Facility
APP asset purchase program
APRA Australian Prudential Regulation Authority
AQR asset quality review
ARM adjustable rate mortgage
ASF available stable funding
ASIC Australian Securities and Investments Commission
ATM automated teller machine
BCBS Basel Committee on Banking Supervision
BCCI Bank Credit and Commerce International
BEEPS Business Environment and Enterprise Performance Survey
BHC bank holding company
BIS Bank for International Settlements
B/M ratio book-to-market ratio
BoJ Bank of Japan
BOJ-NET Japan’s Real Time Gross Settlement Network
BOLR buyer of last resort
BOPEC Summary performance ratings assigned to US bank holding companies
over the period 1987 to 2004
BRRD Bank Recovery and Resolution Directive
BRSS Bank Regulation and Supervision Survey
C&I commercial and industrial
CAMELS Capital, Assets, Management, Earnings, Liquidity, and Sensitivity
xxiv list of abbreviations
CAPM capital asset pricing model

CAR cumulative abnormal return
CATFIN early warning systemic risk indicator
CB central bank
CBC commercial bank clearinghouse
CBOT Chicago Board of Trade
CBPP covered bond purchase program
CCAR Comprehensive Capital Analysis and Review
CCB capital conservation buffer
CCyB countercyclical capital buffer
CDCI Community Development Capital Initiative
CDO collateralized debt obligation
CDS credit default swap
CEE Central and Eastern Europe
CFPB Consumer Financial Protection Bureau
CET1 Common Equity Tier 1
CGFS Committee on the Global Financial System
CHAPS UK’s RTGS network
Check 21 Electronic processing/collection of paper checks in the US
CHIPS A US bank-operated large-value payment network
CISS Composite Indicator of Systemic Stress
CLS Bank A Continuous Linked Settlement bank handling foreign exchange
transactions
CLTV combined loan-to-value ratio
CMBS commercial mortgage-backed security
CME Chicago Mercantile Exchange
CMO collateralized mortgage obligation
CNAV constant net asset value
CoCos Contingent Convertible Bonds
CoVaR Conditional Value at Risk
CP commercial paper
CPFF Commercial Paper Funding Facility
CPP Capital Purchase Program
CR3 three-bank concentration ratio
CR5 five-bank concentration ratio
CRA credit rating agency
CRD Capital Requirements Directive
CRE commercial real estate
CS credit spread
CSPP corporate sector purchase program
CSR corporate social responsibility
CVA credit valuation adjustment
DEA data envelopment analysis
list of abbreviations xxv
DFA Dodd–Frank Act

DFAST Dodd–Frank Act Stress Test
DIC Deposit Insurance Company
DIDMCA Depository Institutions Deregulation and Monetary Control Act
DRC Democratic Republic of Congo
DSGE dynamic stochastic general equilibrium
D-SIBs domestically systemically important banks
DSTI debt-service-to-income
DTI debt-to-income ratio
DVP delivery versus payment
DW discount window
EAD exposure at default
EBA European Banking Authority
EBITDA earnings before interest, tax, depreciation, and amortization
EBRD European Bank for Reconstruction and Development
EC European Commission
ECB European Central Bank
ECOFIN EU Council of Finance
EDIS European Deposit Insurance Scheme
EEC European Economic Community
EESA Emergency Economic Stabilization Act
EFSF European Financial Stability Facility
EFTPOS electronic funds transfer at point of sale
EIB European Investment Bank
EIOPA European Insurance and Occupational Pensions Authority
ELA emergency liquidity assistance
EM emerging market
EMU Economic and Monetary Union
ES expected shortfall
eSLR enhanced supplementary leverage ratio
ESRB European Systemic Risk Board
ESRC European Systemic Risk Council
EU European Union
Euro 1 A European bank-operated large-value payment network
EVT extreme-value theory
FAS Financial Access Survey
FASB Financial Accounting Standards Board
FDI foreign direct investment
FDIC Federal Deposit Insurance Corporation
FED US Federal Reserve
Fedwire US’s RTGS network
FHA Federal Housing Administration
FHFA Federal Housing Finance Agency
xxvi list of abbreviations
FHLB Federal Home Loan Bank

FHLMC Federal Home Loan Mortgage Corporation (also Freddie Mac)
FICO Fair Isaac and Company
FILP Fiscal Investment Loan Program
FINDEX Global Financial Inclusion Database
FinTech financial technologies
F-IRB foundation internal ratings-based approach
FNMA Federal National Mortgage Association (also Fannie Mae)
FRB Federal Reserve Bank
FSA Financial Services Agency
FSAP Financial Sector Assessment Programs
FSB Financial Stability Board
FSIs financial system inquiries
FSOC Financial Stability Oversight Council
FSRRA Financial Services Regulatory Relief Act
FSU Former Soviet Union
FX foreign exchange
G20 Group of 20 Heads of State
GAAP Generally Accepted Accounting Principles
GCC Gulf Cooperation Council
GFC Global Financial Crisis or Great Financial Crisis
GDP Gross Domestic Product
GIIPS Greece, Italy, Ireland, Portugal and Spain
Giro European credit transfer network
GLB Gramm–Leach–Bliley Act
GNMA Government National Mortgage Association (also Ginnie Mae)
GSE government-sponsored enterprise
G-SIBs Global Systemically Important Banks
G-SIFIs Global Systemically Important Financial Institutions
HAMP Home Affordable Modification Program
HARP Home Affordable Refinance Program
HHI Herfindahl–Hirschman Index
HMDA Home Mortgage Disclosure Act
HQLA high-quality liquid assets
ICOs initial coin offerings
IDB Islamic Development Bank
IFIs international financial institutions
IFRS International Financial Reporting Standards
IFSB Islamic Financial Services Board
IFSI Islamic Financial Services Industry
IIFM International Islamic Financial Market
IMF International Monetary Fund
InsurTech insurance technologies
list of abbreviations xxvii
IO industrial organization
IRA individual retirement accounts
IRB internal ratings-based
ITT intention-to-treat
JA Bank Japan Agriculture Bank
JBIC Japan Bank for International Cooperation
JFC Japan Finance Corporation
KYC know your customer
KYCC know your customer’s customer
LATE local average treatment effects
LGFV local government financing vehicle
LCBOs large and complex banking organizations
LCR liquidity coverage ratio
LGD loss given default
LIBOR London Interbank Offered Rate
LLP loan loss provisioning
LMI liquidity mismatch index
LOLR lender of last resort
LPFC limited-purpose finance company
LSAP Large-Scale Asset Purchase
LSIs Less Significant Institutions
LTRO Long-Term Refinancing Operation
LTV loan-to-value
LVG leverage
M maturity
M&A mergers and acquisitions
MAC material adverse change
MBS mortgage-backed securities
MENA Middle East and North Africa
MERS Mortgage Electronic Registration System
MES marginal expected shortfall
MFIs microfinance institutions
ML machine learning
MMDA money market deposit account
MMIFF Money Market Investment Fund Facility
MMFs money market funds
MMMFs money market mutual funds
MoF Ministry of Finance
MRO Main Refinancing Operations
MTN medium-term note
NBCI non-bank credit intermediation
NCOF net cash outflows
NEIO new empirical industrial organization
xxviii list of abbreviations
NFC non-financial corporation

NFIB National Federation of Independent Businesses
NIC National Information Center
NIRP negative interest rate policy
NOW negotiable order of withdrawal account
NPF non-performing financing
NPL non-performing loan
NRSRO Nationally Recognized Statistical Rating Organization
NSFR net stable funding ratio
OCC Office of the Comptroller of the Currency
OECD Organisation for Economic Co-operation and Development
OFC off-shore financial center
OLA orderly liquidation authority
OLF orderly liquidation fund
OMO open market operations
OMT outright monetary transactions
OTH originate-to-hold
OTC over-the-counter
OTD originate-to-distribute
OTS Office of Thrift Supervision
P2P Peer-to-peer
PBoC People’s Bank of China
PCA prompt corrective action
PD probability of default
PDCF primary dealer credit facility
PE private equity
PIN Personal Identification Number
PLC public limited company
PPI payment protection insurance
PRA Prudential Regulatory Authority
PSD2 Payments Systems Directive 2
PSEs public sector entities
PVP payment versus payment
QE quantitative easing
RAROC risk-adjusted return on capital
RCTs randomized controlled trials
RegTech regulatory technology
REITs real estate investment trusts
REMICs real estate mortgage investment conduits
Repos repurchase agreements
RFC Reconstruction Finance Corporation
RMB renminbi
RMBS residential mortgage-backed securities
list of abbreviations xxix
RMP relative market power

ROA return on assets
ROE return on equity
ROSCAS rotating savings and credit associations
RSF required stable funding
RTGS Real-Time Gross Settlement
RWA risk-weighted assets
S&Ls savings and loans
SBA Small Business Administration (US)
SBCS small business credit scoring
SCB stress capital buffer
SBET small business economic trends
SCF Survey of Consumer Finances
SBLF Small Business Lending Fund
SCAP Supervisory Capital Assessment Program
SCP structure–conduct–performance
SCR sectoral capital requirements
SDG sustainable development goals
SEC Security and Exchange Commission
SEE Southeastern Europe
SEPA Single Euro Payments Area
SES systemic expected shortfall
SFT securities financing transaction
SIC Standard Industrial Classification
SIFI systemically important financial institution
SIV structured investment vehicle
SLR supplementary leverage ratio
SMEs small to medium-sized enterprises
SNC Shared National Credit
SND subordinated notes and debentures
SOCBs state-owned commercial banks
SOEs state-owned enterprises
SOP say-on-pay
SPOE single point of entry
SPV special purpose vehicle
SRISK systemic risk
SRF Single Resolution Fund
SRM Single Resolution Mechanism
SSB Sharia Supervisory Board
SSBF Survey of Small Business Finance
SSC sequential servicing constraint
SSM Single Supervisory Mechanism
STBL Survey of Terms of Bank Lending
xxx list of abbreviations
STC simple, transparent, and comparable

SWF sovereign wealth fund
SWIFT Society for Worldwide Interbank Financial Telecommunication,
a message transfer network
TAF Term Auction Facility
TAGP Transaction Account Guarantee Program
TALF Term Asset-Backed Securities Loan Facility
TARGET 2 Europe’s RTGS network
TARP Troubled Assets Relief Program
TBTF too-big-to-fail
TFP total factor productivity
TIP targeted investment program
TITF too-interconnected-to-fail
TLAC total loss-absorbing capacity
TLGP Temporary Liquidity Guarantee Program
TLTRO Targeted Longer-Term Refinancing Operations
TMTF too-many-to-fail
TruPS trust preferred securities
TSLF Term Securities Lending Facility
UCITS Undertakings for Collective Investment in Transferable Securities
UMP unconventional monetary policies
VaR Value at Risk
VI Vienna Initiative
WMP wealth management products
WOCCU World Council of Credit Unions
WTO World Trade Organization
ZLB zero lower bound
List of Contributors
The Editors
Allen N. Berger is the H. Montague Osteen, Jr., Professor in Banking and Finance and
Ph.D coordinator of the Finance Department, Darla Moore School of Business;
Carolina Distinguished Professor, University of South Carolina; Senior Fellow, Wharton
Financial Institutions Center; and Fellow, European Banking Center. He also currently
serves on the editorial boards of seven professional finance and economics journals. He
is co-author of Bank Liquidity Creation and Financial Crises (2016, Elsevier) and is
currently co-authoring TARP and other Bank Bailouts and Bail-Ins around the World:
Connecting Wall Street, Main Street, and the Financial System (2019, Elsevier). He has
published well over 100 professional articles including papers in top finance journals.
His research has been cited over 70,000 times according to Google Scholar, and he has
given invited keynote addresses on five continents. He was Senior Economist from 1989
to 2008 and Economist from 1982–9 at the Board of Governors of the Federal Reserve
System. He received a Ph.D in Economics from the University of California, Berkeley
in 1983, and a B.A. in Economics from Northwestern University in 1976.
Philip Molyneux is Dean of the College of Business Administration at the University of
Sharjah (in the UAE). His main area of research is on the structure and efficiency of
banking markets and he has published widely in this area. Recent publications appear
in the Journal of Money, Credit and Banking, Journal of Financial Intermediation, Journal
of Banking & Finance and the Review of Finance. He has co-written/edited over thirty-five
books and is also the series editor of the Palgrave Macmillan Studies in Banking and
Financial Institutions—with over 135 books in the series to date. In the past, Philip has
acted as a consultant to the New York Federal Reserve Bank, World Bank, European
Commission, UK Treasury, Citibank Private Bank, Barclays Wealth, McKinsey, Credit
Suisse and various other international banks and consulting firms.
John O.S. Wilson is Professor of Banking and Finance and Director of the Centre for
Responsible Banking & Finance based at the University of St Andrews. He is also a
Member of the Scientific Advisory Board of Chartered Association of Business Schools
Academic Journal Guide. Previously, he was Treasurer and General Secretary of the
British Accounting and Finance Association during the period 2009–11, and the
founding Chair of the British Accounting and Finance Association Financial Markets
and Institutions Special Interest Group over the period 2007–18. He has guest edited
xxxii list of contributors
special issues for Journal of Corporate Finance, Journal of Banking & Finance, Journal of
Economic Behaviour & Organization, European Journal of Finance, Public Money &
Management, British Accounting Review and Managerial Finance. In the period June 2011
to April 2012, John served as a full member of a Commission on Credit Unions
established by the Irish Government. The Commission delivered interim and final
reports to the Minister for Finance in September 2011 and April 2012 respectively. In
2018, John delivered evidence on the impact of Brexit on UK small and medium-sized
enterprises to the House of Lords EU Internal Markets Committee.
Contributors
Tobias Adrian is the Financial Counsellor and Director of the Monetary and Capital
Markets Department of the International Monetary Fund (IMF). In this capacity, he
leads the IMF’s work on financial sector surveillance, monetary and macroprudential
policies, financial regulation, debt management, and capital markets. He also oversees
capacity-building activities in IMF member countries, particularly with regard to the
supervision and regulation of financial systems, central banking, monetary and
exchange rate regimes, and asset and liability management. Prior to joining the IMF, he
was a Senior Vice President of the Federal Reserve Bank of New York and the Associate
Director of the Research and Statistics Group. At the Federal Reserve, he contributed
to monetary policy, financial stability policies, and crisis management. He taught at
Princeton University and New York University and has published extensively in
economics and finance journals, including the American Economic Review, Journal of
Finance, Journal of Financial Economics, and Review of Financial Studies. His research
spans asset pricing, financial institutions, monetary policy, and financial stability, with
a focus on aggregate consequences of capital markets developments. He holds a Ph.D
from the Massachusetts Institute of Technology, an M.Sc. from the London School of
Economics, a Diploma from Goethe University Frankfurt, and a Maîtrise from
Dauphine University Paris. He received his Abitur in Literature and Mathematics from
Humboldtschule Bad Homburg.
Franklin Allen is Professor of Finance and Economics and Director of the Brevan
Howard Centre at Imperial College London and has held these positions since July
2014. He was on the faculty of the Wharton School of the University of Pennsylvania
from July 1980 to June 2016. He now has Emeritus status there. He was formerly Vice
Dean and Director of Wharton Doctoral Programs, Co-Director of the Wharton
Financial Institutions Center, Executive Editor of the Review of Financial Studies and
Managing Editor of the Review of Finance. He is a past President of the American
Finance Association, the Western Finance Association, the Society for Financial
Studies, the Financial Intermediation Research Society and the Financial Management
Association, and a Fellow of the Econometric Society and the British Academy. He
received his doctorate from Oxford University. His main areas of interest are corporate
list of contributors xxxiii
finance, asset pricing, financial innovation, comparative financial systems, and financial
crises. He is a co-author with Richard Brealey and Stewart Myers of the eighth through
twelfth editions of the textbook Principles of Corporate Finance.
Linda Allen holds the William F. Aldinger Chair in Banking and Finance at Baruch
College, City University of New York. Her broad areas of research are risk measurement
and management, focusing on systemic risk, credit risk, and operational risk; the
evolution of financial markets and bank regulation; and the organization of financial
institutions. Her latest book Credit Risk Measurement In and Out of Crisis: New Approaches
to Value at Risk and Other Paradigms, 3rd edition (Wiley, 2010), co-authored with
Anthony Saunders, describes the global financial crisis that began in 2007, as well as
deconstructs credit risk measurement models commonly used by bankers and other
finance professionals. She is also the author of Capital Markets and Institutions: A Global
View (Wiley, 1997) and co-author of Understanding Market, Credit and Operational Risk
(Blackwell, 2004). She is an associate editor of many finance journals, and has published
extensively in top academic journals in finance and economics. Along with her consulting
in securities litigation, she has lectured and advised all over the world on topics of risk
measurement and management, banking trends, and financial market development.
Deniz Anginer is a financial economist in the Finance and Private Sector Development
Team of the World Bank’s Research Group. He conducts research in the areas of
financial intermediation and empirical asset pricing. His research work in systemic risk
and financial stability has been widely cited by academics, media, and policymakers.
He has a Ph.D in Finance from the Ross School of Business at the University of Michigan.
Adam B. Ashcraft is currently a Managing Director in the Global Risk Analytics Group
at Bank of America. Previously, he worked at the Federal Reserve Bank of New York for
seventeen years where he held various roles including Co-Chair of the LISCC Liquidity
Program, Head of Credit Risk Management, and Research Economist. He holds Bachelor’s
degrees in Economics and Mathematics & Statistics from Miami University and a
Doctorate in Economics from the Massachusetts Institute of Technology.
Thorsten Beck is Professor of banking and finance at Cass Business School in
London. He is also a research fellow of the Centre for Economic Policy Research
(CEPR) and the CESifo. He was Professor of Economics from 2008 to 2014 at Tilburg
University and the founding chair of the European Banking Center from 2008 to
2013. Previously he worked in the research department of the World Bank and has
also worked as consultant for, among others, the European Central Bank, the Bank
of England, the BIS, the IMF, the European Commission, and the German Development
Corporation. His research, academic publications, and operational work have focused
on two major questions: What is the relationship between finance and economic
development? What policies are needed to build a sound and effective financial
system? Recently, he has concentrated on access to financial services, including SME
finance, as well as on the design of regulatory and bank resolution frameworks. He
holds a Ph.D from the University of Virginia and an M.A. from the University of
Tübingen in Germany.
xxxiv list of contributors
Lamont K. Black is an Assistant Professor of Finance in the Driehaus College of

Business at DePaul University in Chicago. He is also the Academic Director for DePaul’s
Center for Financial Services and the Chair of the Banking Advisory Group for FinTEx.
Prior to joining the faculty of DePaul, he was an economist at the Federal Reserve
Board of Governors in Washington, DC. His research has been published in several
journals, including Journal of Financial Intermediation, Journal of Money, Credit and
Banking; and Journal of Banking and Finance. He serves as a referee for the Review
of Financial Studies and Management Science among other journals. In his work on
banking policy, he contributed to issues including incentive compensation, bank
liquidity requirements, and European financial stability. He is also a co-organizer of
the annual Chicago Financial Institutions Conference.
Michael Blank is a Ph.D candidate in Business Economics at Harvard Business
School. Previously, he served as a senior research analyst at the Federal Reserve Bank
of New York.
Robert R. Bliss is Professor Emeritus of Finance at Wake Forest University, where he
taught courses in derivatives, fixed income, and capital markets. Prior to returning to
academia in 2014, he served as a senior financial economist at Federal Reserve Bank of
Chicago and held research positions at the Bank of England and the Federal Reserve
Bank of Atlanta. Previously, he taught finance at Indiana University. His research
interests include fixed income securities and derivatives, structured finance, risk
management, financial regulation, and the law and economics of insolvency. He earned
his doctorate in finance from the University of Chicago.
Arnoud W.A. Boot is Professor of Corporate Finance and Financial Markets at the
University of Amsterdam and member of the Royal Netherlands Academy of Arts and
Sciences (KNAW). He is chairman of the Bank Council of the Dutch Central Bank
(DNB), member of the Dutch Scientific Council for Government Policy (WRR) and
chairman of the European Finance Association (EFA). He is also a research fellow at
the Centre for Economic Policy Research (CEPR) in London. He was member of the
Advisory Committee of the European Systemic Risk Board (ESRB), and a faculty
member at the Kellogg Graduate School of Management at Northwestern University in
Chicago. He has written extensively in the areas of financial institutions and corporate
finance, with publications in major academic journals, such as the Journal of Finance,
American Economic Review, Review of Financial Studies, and the Journal of Financial
Intermediation.
Narjess Boubakri is the Bank of Sharjah Chair in Banking and Finance, Professor of
Finance and Head of the Finance Department at the School of Business Administration
of the American University of Sharjah. Her research interests include, among other
things, privatization, corporate governance, political economy of reforms, institutional
economics, and the impact of institutional infrastructure on corporations. Her papers
have been published in the Journal of Finance, the Journal of Financial Economics, the
Journal of International Business Studies, the Journal of Accounting Research, and the
list of contributors xxxv
Journal of Financial and Quantitative Analysis, among others. She acts as Associate
Editor for the Journal of Corporate Finance, as Editor in Chief for Finance Research
Letters, co-editor for the Quarterly Review of Economics and Finance, and is on the
editorial boards of Emerging Markets Review and the Journal of International Financial
Markets Institutions and Money.
Christa H.S. Bouwman is Associate Professor of Finance and Patricia & Bookman
Peters Professor of Finance at Mays Business School at Texas A&M University; and
Fellow of the Wharton Financial Institutions Center at the University of Pennsylvania.
She was Associate Professor of Banking & Finance at Case Western Reserve University
where she also held the Lewis-Progressive Chair; Visiting Assistant Professor of
Finance at MIT’s Sloan School of Management; Research Associate at the Federal
Reserve Bank of Cleveland; and Visiting Scholar at the Federal Reserve Bank of
Boston and the Federal Reserve Board in Washington DC. Her research interests are
in Financial Intermediation and Corporate Finance. She is Co-Editor-in-Chief of the
Journal of Financial Intermediation. She is Associate Editor of the Journal of Banking
& Finance; and former Associate Editor of the Journal of Financial Intermediation,
the Review of Finance, and Corporate Governance: An International Review. Her
research papers have been published in the American Economic Review, Journal of
Financial Economics, Review of Financial Studies, Journal of Financial Intermediation,
Journal of Financial Stability, Journal of Banking & Finance, and MIT/Sloan Management
Review. She is a co-author of the book “Bank Liquidity Creation and Financial Crises”
(Elsevier, 2015). She worked for five years at ABN AMRO Bank (in Venture Capital,
Project Finance Advisory, and Capital Structure Advisory), and as a part-time
litigation consultant for the US Department of Justice. She received a Ph.D in Finance
from the University of Michigan, an M.B.A. from Cornell University, and a B.A./
M.A. in Economics and Business (cum laude) from the University of Groningen, the
Netherlands.
Peter Breuer is Deputy Chief of the Global Analysis Division at the International
Monetary Fund. In this role he jointly manages a team that analyzes risks to global
financial stability, monitors and assesses global market developments, and helps ensure
that the Fund takes consistent and well-informed views about financial risks and
policies, including in the Global Financial Stability Report. Previously, as Deputy Chief
of the Debt and Capital Markets Instruments Division, he oversaw teams analyzing
risks emanating from shadow banking and providing debt management advice. He also
led the Financial Sector Stability Assessment for Luxembourg. He headed the IMF’s
office in Ireland as Resident Representative during the EU–IMF program in 2011–14. In
previous roles, he served as Assistant to the Director in the Monetary and Capital
Markets Department, and worked in the IMF’s Asia-Pacific, European, International
Capital Markets, Strategy and Policy Review, and Research Departments. Policy areas
he has covered include capital markets and financial stability, as well as debt sustainability
and restructuring issues. Previous country responsibilities include Argentina, Bulgaria,
Finland, Hong Kong, Ireland, Luxembourg, Pakistan, Paraguay, Peru, Uganda, United
xxxvi list of contributors
Arab Emirates, and Uruguay. He holds a Ph.D and an M.A. from Brown University, a
M.Sc. from the London School of Economics, and a B.A. from Vassar College.
Claudia M. Buch is the Vice-President of the Deutsche Bundesbank. She is responsible
for Financial Stability, Statistics, and Internal Audit. She is the accompanying person of
the President of the Bundesbank on the ECB Governing Council and a member of the
German Financial Stability Committee (FSC). Prior to joining the Bundesbank in
May 2014, she was the President of the Institute for Economic Research (IWH) in
Halle (2013–14), Professor of Economics at the Otto von Guericke University Magdeburg
(2013–14), and Professor of Economics for “International Finance and Macroeconomics”
at the University of Tübingen (2004–13). From 2012 to 2014, she was a member of the
German Council of Economic Experts. She was Scientific Director at the Institute for
Applied Economic Research (IAW) in Tübingen (2005–13), and worked at the Institute
for World Economics in Kiel (IfW) from 1992 until 2013. She habilitated at the University
of Kiel (2002) after receiving her doctorate there in 1996. Between 1985 and 1991, she
studied Economics at the University of Bonn and she graduated from the University of
Wisconsin (Eau Claire) with a Master of Business Administration degree in 1988. Her
fields of specialization are financial stability, international banking, international
finance and macroeconomics, and financial integration.
Erwin Bulte is Professor of Development Economics at Wageningen University, and
Professor of Institutions and Development at Utrecht University. His main research
interests include institutional change, health, insurance, and agricultural development
in developing countries, and much of his research is based on field experiments in
Africa. Erwin has published more than 100 papers in international journals, including
papers in the American Economic Review, Economic Journal, European Economic
Review, and Journal of Public Economics. He is one of the leaders of the Policies,
Institutions and Market program of the CGIAR.
Charles W. Calomiris is the Henry Kaufman Professor of Financial Institutions at
Columbia Business School, a Professor at Columbia’s School of International and Public
Affairs, and a Research Associate of the National Bureau of Economic Research. He is
a member of the Shadow Open Market Committee and the Financial Economists
Roundtable. He is a Distinguished Visiting Scholar at the Hoover Institution, where he
co-directs the Initiative on Regulation and the Rule of Law, and a Fellow at the
Manhattan Institute. He received a B.A. in Economics from Yale University in 1979 and
a Ph.D in Economics from Stanford University in 1985.
Gerard Caprio, Jr. is William Brough Professor of Economics at Williams College and
Chair of the Center for Development Economics. Previously he was the Director for
Policy in the World Bank’s Financial Sector Vice Presidency and head of the financial
sector research group. His research included establishing the first databases on banking
crises around the world and on bank regulation and supervision, and he worked on
financial system reform and development issues around the world. He has consulted
for the IMF, the World Bank, and various governments. He has authored numerous
list of contributors xxxvii
articles, and co-authored The Guardians of Finance: Making Regulators Work for Us,
with Jim Barth and Ross Levine (MIT Press, 2012), with whom he also wrote Rethinking
Bank Regulation: Till Angels Govern (Cambridge University Press, 2006). Earlier
positions include: Vice President and Head of Global Economics at JPMorgan, and
economist positions at the Federal Reserve Board and the IMF. He has taught at Trinity
College Dublin, where he was a Fulbright Scholar, and at George Washington University.
Fernando J. Cardim de Carvalho was Emeritus Professor of Economics at the Institute
of Economics, Federal University of Rio de Janeiro (Brazil). Former associate editor of
the Journal of Post Keynesian Economics, he is author of the books Mr Keynes and the
Post Keynesians (Edward Elgar, 1992) and Liquidity Preference and Monetary Economies
(Routledge, 2015). His research interests were Keynesian macroeconomics, international
monetary economics, and financial systems.
Jacopo Carmassi is a Senior Financial Stability Expert in the Financial Regulation and
Policy Division, DG Macroprudential Policy and Financial Stability, at the European
Central Bank. He is a Fellow of CASMEF, the Arcelli Center for Monetary and Financial
Studies, University LUISS Guido Carli, and a Fellow of the Wharton Financial
Institutions Center, University of Pennsylvania. Previously, he worked as an economist
at Assonime, the Association of Joint Stock Companies incorporated in Italy, and at the
Italian Banking Association. He holds a Ph.D in Law and Economics from University
LUISS Guido Carli of Rome. He is author of several publications on banking and
financial regulation topics, including the 2007–9 Global Financial Crisis, bank capital
rules, bank crisis resolution, deposit insurance, banking union in Europe, and the
corporate complexity of Global Systemically Important Banks.
Elena Carletti is Professor of Finance at Bocconi University and Scientific Director
of the Florence School of Banking and Finance at the European University Institute
(EUI). Previously she was Professor of Economics at the EUI, holding a joint chair in
the Economics Department and the Robert Schuman Centre for Advanced Studies.
She is a member of the Board of Directors of Unicredit SpA and of the Advisory
Scientific Committee of the European Systemic Risk Board. Furthermore, she is
Research Fellow at CEPR, Fellow of the Finance Theory Group, CESifo, IGIER, and
the Wharton Financial Institutions Center. Among other appointments, she has
worked as consultant for the OECD and the World Bank, has served in the review
panel of the Irish Central Bank and of the Riskbank, and has been a board member
of the Financial Intermediation Research Society and of the Fondazione della Cassa
di Risparmio di La Spezia. Her main research areas are Financial Intermediation,
Financial Crises and Regulation, Competition Policy, Corporate Governance, and
Sovereign Debt.
Barbara Casu is the Director of the Centre for Banking Research at Cass Business
School, where she is Professor of Banking and Finance. Her main research interests are
in empirical banking, although several of her research projects are cross-disciplinary
and include aspects of financial regulation, structured finance, accounting and
xxxviii list of contributors
corporate governance. She has published widely, with over forty publications in
peer-reviewed journals. She has also written the popular textbook Introduction to
Banking (Pearson FT, 2015), which is widely adopted for banking courses across the
world. She has recently co-edited the Palgrave Handbook of European Banking.
Nicola Cetorelli is a Vice President at the Federal Reserve Bank of New York and the
Head of the Financial Intermediation Function in its Research Group. His research has
focused on the industrial organization and the corporate finance characteristics of the
banking industry and the relationships with real economic activity. More recently he
has worked on themes of international banking and on the evolution of financial
intermediation. He represents the New York Fed on various Financial Stability Boards’
international working groups. He has published in a number of scholarly journals,
among which the Journal of Finance, Journal of Economic Theory, American Economic
Review, and Journal of International Economics. He has also written many articles in
various policy journals and book chapters. He received his Ph.D in Economics from
Brown University and a B.A. from the University of Rome, Italy.
Ruiyuan (Ryan) Chen is an Assistant Professor of Finance at the West Virginia
University. His current research focuses on state ownership, corporate governance, and
corporate cash holdings. His research has been published in Emerging Markets Review,
the Journal of Corporate Finance, and the Journal of Financial and Quantitative Analysis.
Robert Cull is acting research manager and Lead Economist in the Finance and Private
Sector Development Team of the World Bank’s Development Research Group. His
most recent research is on the performance of microfinance institutions, African
financial development, Chinese financial development and firm performance, and the
effects of the global financial crisis on foreign banks in developing economies. He has
published numerous articles in peer-reviewed academic journals including the
Economic Journal, Journal of Development Economics, Journal of Economic Perspectives,
Journal of Financial Economics, Journal of Law and Economics, and the Journal of Money,
Credit, and Banking. The author or editor of multiple books, his most recent co-edited
book, Banking the World: Empirical Foundations of Financial Inclusion was published
by MIT Press in January, 2013. He is also co-editor of the Interest Bearing Notes, a
bi-monthly newsletter reporting on financial and private sector research.
Olivier de Bandt is director of International Economics and Cooperation at the Banque
de France. He was previously head of the Directorate of Research and Risk Analysis at
the ACPR, the French Prudential Supervision and Resolution Authority. He holds a
Ph.D from the Department of Economics of the University of Chicago. He contributed
many articles in peer-reviewed academic journals on stress-testing methods, the
analysis of systemic risk, the impact of banking regulation, the economics of insurance.
He is an Associate Editor of the Journal of Financial Stability.
Luiz Fernando de Paula is Professor of Economics at the State University of Rio de
Janeiro (Brazil), joint appointment between the Faculty of Economics (FCE) and
list of contributors xxxix
Institute of Social and Political Studies (IESP), and CNPq Researcher. He is currently a
co-editor of the Brazilian Keynesian Review. He is author of the book Financial
Liberalization and Economic Performance: Brazil at the Crossroads (Routledge, 2011)
and co-editor of the book Financial Liberalization and Economic Performance in
Emerging Countries (Palgrave Macmillan, 2008). A former chairman of the Brazilian
Keynesian Association, his research interests include banking, financial systems,
Keynesian macroeconomics, and economic policies related to emerging economies.
Hans Degryse is Professor of Finance at the Department of Accountancy, Finance and
Insurance of the KU Leuven. He is a research fellow at the CEPR, CESIfo, the European
Banking Center (EBC), and TILEC. He is a member of the Group of Economic Advisers
of ESMA. Before joining Leuven in 2012, he was Professor of Finance at Tilburg
University. His research focuses on financial intermediation, including theoretical and
empirical banking as well as market microstructure. He has published in many journals
including the American Economic Review, Journal of Finance, Journal of Financial
Economics, Review of Financial Studies, Management Science, Review of Finance, Journal
of Financial Intermediation, and the Economic Journal, and has been presented in
leading international conferences such as the American Finance Association, the
Western Finance Association, the European Finance Association, and the Financial
Intermediation Research Society. He co-authored, with Moshe Kim and Steven Ongena,
the graduate textbook Microeconometrics of Banking: Methods, Applications and Results
(Oxford University Press, 2009).
Gayle L. DeLong is an Associate Professor in the Economics and Finance Department
of Baruch College in the City University of New York. She earned a Ph.D in International
Business and Finance from New York University and a Masters in International
Business Studies from the University of South Carolina. Her research interests include
banking, public–private partnerships, and the implications of regulations. In 2012, she
won the Abraham J. Briloff Prize in Ethics at Baruch College, New York.
Asli Demirgüç-Kunt is the Director of Research at the World Bank. After joining the
Bank in 1989 as a Young Economist, she has held different positions, including Director
of Development Policy, Chief Economist of Financial and Private Sector Development
Network, and Senior Research Manager, doing research and advising on financial
sector and private sector development issues. She has published over 100 articles in the
areas of banking crises, financial regulation, links between financial and economic
development, access to financial services and financial inclusion. She has been the
President of International Atlantic Economic Society (2013–14) and Director of Western
Economic Association (2015–18). Prior to coming to the Bank, she was an Economist at
the Federal Reserve Bank of Cleveland. She holds a Ph.D and an M.A. in economics
from the Ohio State University.
Robert DeYoung is the Koch Distinguished Professor of Business Economics and holds
the Harold Otto Chair in Economics at the University of Kansas School of Business. He
is also co-editor of the Journal of Money, Credit and Banking. Prior to joining the KU
xl list of contributors
faculty, he was an Associate Director of Research at the Federal Deposit Insurance

Corporation, an Economic Advisor at the Federal Reserve Bank of Chicago, a Senior
Economist at the Office of the Comptroller of the Currency, and a Joyce Foundation
Teaching Fellow at Beloit College. He worked his way to an undergraduate degree at
Rutgers University-Camden, and holds a Ph.D in economics from the University of
Wisconsin-Madison.
Gregory Elliehausen is Principal Economist in the Consumer Finance Section of the
Division of Research and Statistics at the Board of Governors of the Federal Reserve
System. His current research focuses on consumer financial behavior, regulation of
financial markets and services, and markets for high-rate credit products. His research
has been published in numerous professional journals. Recent work includes Truth in
Lending: Theory, History, and a Way Forward (co-authored with T.A. Durkin), which
analyzes the purposes, strengths, and weaknesses of disclosures as consumer protections
in financial transactions, and Consumer Credit and the American Economy (co-authored
with T.A. Durkin, M.S. Staten, and T.J. Zywicki), which examines the economics,
psychology, law, and regulation of consumer credit in the United States. Previously, he
held research positions at George Washington University (2006–9), Georgetown
University (1998–2005), and the Board of Governors of the Federal Reserve System
(1981–98). He has a Ph.D degree in business administration from the Pennsylvania
State University.
Mark J. Flannery has been the BankAmerica Eminent Scholar in Finance at the
University of Florida since 1989. He previously held faculty positions at the University
of North Carolina (Chapel Hill) and the University of Pennsylvania. He has published
extensively, particularly in the areas of corporate finance and financial regulation. He
holds economics degrees from Princeton (A.B.) and Yale (M.A., M.Phil, and Ph.D). He
served as president of the Financial Intermediation Research Society (FIRS), president
and board chairman of the Financial Management Association, and member of the
board of directors of the American Finance Association. He was an editor of the Journal
of Money, Credit and Banking from 2000–5.
W. Scott Frame is a financial economist and senior advisor on the financial markets
team in the research department of the Federal Reserve Bank of Atlanta. His major
fields of study are financial institutions, credit markets, real estate, and public policy. He
has been with the Bank since 2001, although he spent two years as the Belk Distinguished
Professor of Finance at the University of North Carolina at Charlotte (2012–14). Before
joining the Bank, he was a senior financial economist at the US Treasury Department
from 1996 to 2000. He also worked at the Federal Reserve Bank of Atlanta as an
economic analyst from 1993 to 1995 and as an instructor at the University of Georgia.
He was promoted to financial economist and policy advisor in 2007 and assumed his
current duties in 2012.
Xavier Freixas is Chairman of the Department of Economics and Business and
Professor at the Universitat Pompeu Fabra in Barcelona (Spain) after becoming full
list of contributors xli
Professor at the Université de Toulouse. He is also affiliated Professor at Barcelona

Graduate School of Economics as well as Research Fellow at CEPR. He has previously
been president of the European Finance Association, Deutsche Bank Professor of
European Financial Integration at Oxford University, Houblon Norman Senior Fellow
of the Bank of England and chairman of the Risk Based Regulation program of the
Global Association of Risk Professionals (GARP). He has been a consultant for the
European Investment Bank, the New York Fed, the European Central Bank, the World
Bank, the Inter-American Development Bank and the European Investment Bank. He
is Associate Editor of the Journal of Financial Intermediation and of the Journal of
Financial Services Research. He is well known for his MIT Press book, jointly with Jean-
Charles Rochet, Microeconomics of Banking. His research focuses on banking and
regulation, and has been published in top international journals.
Zuzana Fungáčová is a Senior Advisor at the Bank of Finland Institute for Economies
in Transition in Helsinki. Her research interests are in banking, emerging markets and
their financial sectors as well as financial stability. She has experience from the European
Central Bank and was also a Visiting Economist at the Austrian Central Bank. She
obtained her Ph.D in Economics from the Center for Economic Research and Graduate
Education in Prague and served also as a research affiliate at the Institute of Economic
Studies at Charles University in Prague. Her research has been published in academic
journals including Journal of Banking and Finance, Journal of Financial Services
Research, Journal of Economic Behavior & Organization, World Development, Journal of
Macroeconomics, Economics of Transition, Regional Studies and China Economic Review.
John Goddard is the Head of Aberystwyth Business School at Aberystwyth University,
Wales. He is also Emeritus Professor of Financial Economics at Bangor University, and
served as Deputy Head of Bangor Business School between 2007 and 2017. His previous
academic appointments were at the University of Leeds, Abertay University and
Swansea University. He has several years’ practitioner experience in the UK life
insurance industry. His research interests are in industrial organization, financial
markets and institutions, and the economics of professional sports. He is author or
co-author of sixty-nine refereed journal articles. His co-authored book publications
include The Economics of Football (2nd edition, Cambridge University Press, 2011),
Banking: A Very Short Introduction (Oxford University Press, 2016) and the textbook
Industrial Organization: Competition, Strategy, Policy (5th edition, Pearson, 2017).
Xian Gu is an Assistant Professor of Finance at the Central University of Finance and
Economics in Beijing. Previously she worked as a post-doctoral research fellow at
Wharton Financial Institutions Center and an economist at CITIC Securities in Beijing.
She was also a Visiting Researcher at central banks including Bank of Finland and
Hong Kong Monetary Authority. She earned her Ph.D from Beijing Normal University.
Her main research interests are banking, corporate finance, and China’s economy.
Omrane Guedhami is the C. Russell Hill Professor of Economics and Professor of
International Finance at the Moore School of Business at the University of South
xlii list of contributors
Carolina. His current research focuses on corporate governance, privatization,

corporate social responsibility, and formal and informal institutions and their effects
on corporate policies and firm performance. His research has been published in the
Journal of Financial Economics, the Journal of Accounting Research, the Journal of
Accounting and Economics, the Journal of Financial and Quantitative Analysis, the
Journal of International Business Studies, and Management Science, and the Review of
Finance, among others. He is a member of the editorial boards of major journals,
such as Contemporary Accounting Research and the Journal of International Business
Studies, and is currently serving as a Section Editor at the Journal of Business Ethics
and Associate Editor of the Journal of Corporate Finance and the Journal of Financial
Stability.
Jens Hagendorff is Professor of Finance at the University of Edinburgh. Professor
Hagendorff previously worked at Cardiff University, the Financial Stability Department
of the Bank of Spain and as a lecturer at the University of Leeds. He held Visiting
positions in the US, Italy, and Spain, most recently as a Visiting Fellow at The Federal
Reserve Bank of Atlanta and the Bank of Spain in Madrid. He publishes and lectures
on a range of topics in finance, banking, and investments, in particular the risk and
return implications of corporate governance in the banking industry. His work has
been published in leading international journals, including the Review of Financial
Studies, Journal of Quantitative and Financial Analysis, and Review of Finance. He is
one of the authors of Size, Risk and Governance in European Banking (Oxford
University Press, 2013).
Philipp Hartmann is Deputy Director General of the research department at the
European Central Bank, which he helped build up from its beginning. He also
coordinates the ECB’s work on financial integration and is a Fellow of the Centre for
Economic Policy Research. Previously, he held positions at the London School of
Economics, the European Monetary Institute and Erasmus University Rotterdam. He
published research on financial, monetary, and international issues in numerous
journal articles and several books. He serves as an associate editor of the Journal of
Financial Stability. His policy work has been published in many official reports
and discussed in fora including the ECOFIN Council, the ECB Governing Council,
the Basel Committee on Banking Supervision and the United Nations Economic
Commission for Europe. He holds a Doctorat en Sciences Economiques (Paris) earned
in the European Doctoral Program in Quantitative Economics.
Iftekhar Hasan is the E. Gerald Corrigan Chair in International Business and Finance
at Gabelli School of Business, New York, USA. He serves as the scientific advisor at the
Bank of Finland and is affiliated with the University of Sydney as a fractional Professor.
He is the managing editor of the Journal of Financial Stability and serves as an associate
editor for several other academic journals. His research interests are in the areas
of financial institutions, corporate finance, and emerging economies. Professor
Hasan has numerous publications in print, including books and edited volumes, and
list of contributors xliii
peer-reviewed journal articles in finance, economics, accounting, information systems,

and management journals.
Richard J. Herring is Jacob Safra Professor of International Banking and Professor of
Finance at The Wharton School, University of Pennsylvania, where he is also Director
of The Wharton Financial Institutions Center. Outside the University he serves on the
FDIC Systemic Risk Advisory Committee and the Systemic Risk Council. His research
focuses on banking and financial market regulation and supervision.
Patrick Honohan is Honorary Professor of Economics at Trinity College Dublin, a
Non-resident Senior Fellow at the Peterson Institute for International Economics and a
Research Fellow of CEPR. From 2009–15 he was Governor of the Central Bank of
Ireland. Previously, he was a Senior Advisor at the World Bank and his career has also
included periods on the staffs of the IMF, the Economic and Social Research Institute,
Dublin, and as Economic Advisor to the Taoiseach.
Joseph P. Hughes is Professor of Economics at Rutgers University. He has been a Fellow
of the Wharton Financial Institutions Center and a Visiting Scholar at the Federal
Reserve Bank of Cleveland, the Federal Reserve Bank of Philadelphia, the Federal Reserve
Bank of New York, and the Office of the Comptroller of the Currency. His research has
been published in such journals as the American Economic Review, the Journal of
Banking and Finance, the Journal of Economic Theory, the Journal of Financial
Intermediation, the Journal of Financial Services Research, the Journal of Money, Credit,
and Banking, and the Review of Economics and Statistics. He received his Ph.D from the
University of North Carolina at Chapel Hill.
David Humphrey is the F.W. Smith Eminent Scholar in Banking at Florida State
University and is a Visiting Scholar at the Payments Cards Center at the Federal Reserve
Bank of Philadelphia. He has taught at three universities and previously worked at the
Federal Reserve for sixteen years. His publications have focused on banking and payment
system issues. He received his Ph.D from the University of California (Berkeley).
Dasol Kim is a Senior Economist at the Office of Financial Research, US Department
of the Treasury. He previously served as an Assistant Professor in Banking and Finance
at Weatherhead School of Management, Case Western Reserve University. He has
published papers in journals such as the Journal of Financial Economics, the Review of
Financial Studies, and European Financial Management, and his research has been
featured in various media outlets, including the Wall Street Journal, Barron’s, the
Atlantic, and Forbes. He holds a doctorate in financial economics from the Yale School
of Management, Yale University. In addition, he holds a master’s degree in statistics
from Columbia University and a bachelor’s degree in mathematics and economics from
the University of California, Los Angeles.
Leora Klapper is a Lead Economist in the Finance and Private Sector Research Team
of the Development Research Group at the World Bank. Her publications focus on
corporate and household finance, banking, entrepreneurship, and risk management.
xliv list of contributors
Her current research studies the impact of digital financial services, especially for
women. She is a founder of the Global Findex database, which measures how adults
around the world save, borrow, make payments, and manage risk. Previously, she
worked at the Board of Governors of the Federal Reserve System and Salomon Smith
Barney. She holds a Ph.D in Financial Economics from New York University Stern
School of Business.
Andreas Lehnert is the director of the Division of Financial Stability at the Federal
Reserve Board in Washington, DC. He joined the Fed after earning his Ph.D in economics
from the University of Chicago. He started in the household finance research group
where he worked on a variety of topics in consumer and mortgage credit. During the
financial crisis, he contributed to several projects including various mortgage modification
initiatives, the TARP, the 2009 bank stress tests, and the TALF. In November 2010, he
moved to the Board’s newly created financial stability group where he participates in a
variety of ongoing initiatives to promote financial stability, including regulatory reform,
the periodic assessment of financial vulnerabilities, the development of macroprudential
tools, and the design and oversight of the bank stress tests; in addition, he supports the
Federal Reserve’s role on the Financial Stability Oversight Council and the Financial
Stability Board. His research focuses on financial stability, macroprudential policy,
banking, and finance.
Robert Lensink is a Professor of Finance at the University of Groningen, and a Professor

of Finance and Development (part-time) at Wageningen University. He is a development
economist with extensive experience in field studies, including impact evaluations,
with a focus on microfinance in the broadest sense. He was the chair of the International
Review Panel of the 1st and 2nd round of the International Initiative of Impact
Evaluation (3ie) Open Window to select proposals for impact evaluation in developing
countries. He has published more than 100 articles in international journals, among
which include the American Economic Review, Economic Journal, Management Science,
Public Economics, and World Development. In 2011, he won the SOM Outstanding
Researcher Award (Best Researcher of the Faculty of Economics and Business,
University of Groningen). Robert Lensink has been appointed Officer of the Order of
Orange-Nassau.
Xinming Li is an Associate Professor of Finance at the School of Finance at Nankai

University and a consultant at the World Bank Group. He is also the holder of the
Emerging Scholars Award by the Federal Reserve and the Conference of State Bank
Supervisors. His research areas include a variety of topics related to banking and
financial institutions, corporate finance, and international finance.
Alex Martin is a Senior Research Assistant at the Federal Reserve Board of Governors
in the Division of Financial Stability. Previously, she served as a Research Intern at the
US Department of the Treasury in the Office of Economic Policy. She is a graduate of
the University of Mississippi with a B.A. in International Studies and Mathematics.
Another random document with
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the disease would be greatly furthered if competent epidemiologists
should see fit to devote their entire time to a study of the disease in
its various ramifications. The author suggests a research
organization of individuals whose function it would be to become
completely acquainted with influenza. The organization should be
under the direction of a competent board of epidemiologists. Under
them would work several groups composed of epidemiologists,
bacteriologists and others. There should be sufficient groups so that
they might be distributed to diverse regions of the earth. They should
be equipped for travel, with mobile bacteriologic laboratories and all
the necessary equipment for epidemiologic surveys, so that at a
moment’s notice they could proceed to wherever an epidemic of any
disease simulating influenza is reported to be prevalent. The working
groups would be under the administrative control of the central
directors and would make their reports to them. All groups should be
so distributed geographically as to have easy and rapid access to any
community in which an epidemic might occur. They would keep
themselves informed concerning the disease prevalence in all
communities under their jurisdiction. This would be done through
the co-operation of the civil health authorities and through the
utilization of all other available sources of information. The central
board should be constantly in touch with the groups, so that the
infectious disease prevalence in all parts of the world would be
known at all times.
Had such an organization been in existence during the last thirty
years, every one of the so-called influenza epidemics reported in one
place or another would have been investigated. Detailed
epidemiologic, statistical, demographic and bacteriologic reports
would have been made. It matters little how small or insignificant
the outbreak appears to be. Even the smallest have their
characteristic features and are worthy of study. If we study epidemic
influenza but once in thirty years, we will never become well
acquainted with the disease. We must see it repeatedly and
frequently. If it does not exist during the intervals we must study the
diseases simulating it. It is surprising how much of the knowledge
acquired in 1889 was forgotten by 1918. Even some of the more
important features had passed from memory. Thus we find
statements in 1918 that the age morbidity was quite different from
that in all preceding epidemics. Research into the literature of the
past does not corroborate this impression.
If influenza is scattered throughout the earth in mild form, it
would avail us but little to send a commission to Bokhara to study
the endemic focus supposed by some to exist in Turkestan. Even
though the disease were endemic in that country, one would not
expect to discover epidemics there. The general immunity of the
population in the endemic area is probably increased. Nevertheless
one unit might well be stationed in Turkestan, there to study the
existing conditions regarding infectious diseases.
There would be ample work for all groups at all times. The study
would not be limited to a consideration of infectious diseases.
Sociologic conditions may be of importance. We have recorded
instances of this. Wherever there is an unusual concentration of large
masses of individuals the investigators should study the results of
such concentration.
An advantage of this organization would be that the groups
through their central bureau would establish an information bureau
of infectious disease prevalence analogous to the popular weather
bureau of today. They would report the presence of a cloud before it
had appeared on the local horizon.
In the absence of any epidemics resembling influenza, there would
be abundant opportunity for correlated work. We have mentioned
the epidemiologic resemblances between influenza and certain other
infectious diseases. Comparative study of any or all of them is of
importance. The bacteriologist and the immunologist would find
plenty of material in the study of measles prevalences. The two
diseases are so similar in their manner of spread, in the probable
mode of transmission, in their clinical characteristics and in the
results of laboratory attempts at transmission, that one must assume
that the causative viruses are not dissimilar. Any new facts that we
may gain concerning measles will be of value in the study of
influenza.
Many years could be well devoted merely to a study of immunity in
influenza.
The results obtained by this proposed organization for the
investigation of influenza would be slow in achievement. The study is
not of a type calculated to appeal to the popular imagination.
Communities in which the dread of an imminent pestilence is not
present would subscribe with some hesitation to appeals for
pecuniary assistance. Fortunately, however, there are in existence
several organizations already well developed along these lines,
organizations chiefly interested in certain other diseases. There can
be no doubt but that at the present time the financing of such a
broad project could be arranged, and that the groups could be
efficiently organized on the basis of experience already gained in
similar projects.
Crookshank well remarks that our present epidemiologic
intelligence service is hardly superior to that of a Meteorologic Office
which only gives warning of rain when unfurled umbrellas pass along
the street. Influenza will surely return. There will be mild epidemics
within the next few years. In time another pandemic will arrive, and
after it will come pandemic after pandemic. In 1918 as in 1889 we
were caught unprepared. Let us do our utmost to prevent the
recurrence of this tragedy. To delay is to loose the valuable
information gained during the last two years. The future is not
without well grounded hope, but success will not be achieved until
we have attained a much deeper understanding of the epidemiology
of influenza.
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The Oxford Handbook of Banking, Third

Edition Allen N. Berger

THE Oxford Handbook of

For Mindy (Allen N. Berger)

1. Banking: A Decade on from the Global Financial Crisis 1

3. Commercial Banking and Shadow Banking: The Accelerating

4. Corporate Complexity and Systemic Risk: A Progress Report 95

5. Corporate Governance and Culture in Banking 131

6. Private Information and Risk Management in Banking 153

7. Creation and Regulation of Bank Liquidity 181

9. Technological Change and Financial Innovation in Banking:

10. Payments 285

11. Community Banking Institutions: Commercial Banks,

12. Islamic Banking: A Review of the Empirical Literature

13. Can We Improve the Impact of Microfinance? A Survey

14. Small Business Lending: The Roles of Technology and

15. Residential Mortgages 470

16. Securitization 503

17. Shadow Banking 530

20. Bank Bailouts and Bail-Ins 630

21. Bank Runs and Moral Hazard: A Review of

22. Bank Capital Requirements after the Financial Crisis 707

23. Market Discipline in Regulation: Pre and Post Crisis 736

24. Competition in the Banking Sector 776

25. Behavioral Economics, Financial Literacy, and Consumers’

27. Hardy Perennials: Banking Crises Around the World 885

28. Bank Failures, The Great Depression, and Other

29. Banking Globalization: Cross-border Entry, Complexity,

30. Banking and Real Economic Activity: Foregone Conclusions

32. Banking in Europe: Integration, Reform, and the Road to

33. Banking in Japan: A Post-global Financial Crisis Perspective 1033

34. Banking in Africa 1076

35. Banking in China 1113

36. Banking in the Transition Countries of Central, Southern,

37. Banking in Latin America: Developments and Prospects 1152

38. Banking in Australia and New Zealand—Geographic Proximity,

2.1 Size of the Financial Markets by Country/Region 2001 and 2016,

15.8 Primary-Secondary Mortgage Market Spread 488

22.5 Increase in the Quality of Capital (Cross Sections) 731

34.9 Gaps in Account Penetration in Sub-Saharan Africa 1094

19.1 LOLR Actions by the FED in the 2007–9 Crisis 621

34.3 Account Penetration over Time and across Countries 1093

AAOIFI Accounting and Auditing Organization for Islamic Financial Institutions

CAPM capital asset pricing model

DFA Dodd–Frank Act

FHLB Federal Home Loan Bank

NFC non-financial corporation

RMP relative market power

STC simple, transparent, and comparable

Lamont K. Black is an Assistant Professor of Finance in the Driehaus College of

faculty, he was an Associate Director of Research at the Federal Deposit Insurance

Professor at the Université de Toulouse. He is also affiliated Professor at Barcelona

Carolina. His current research focuses on corporate governance, privatization,

peer-reviewed journal articles in finance, economics, accounting, information systems,

Robert Lensink is a Professor of Finance at the University of Groningen, and a Professor

Xinming Li is an Associate Professor of Finance at the School of Finance at Nankai

1890. The influenza epidemic of 1889–90. 21st Annual Report

Abrahams, Hallows, Eyre and French.

1. Banking: A Decade on from the Global Financial Crisis 1

4. Corporate Complexity and Systemic Risk: A Progress Report 95

5. Corporate Governance and Culture in Banking 131

6. Private Information and Risk Management in Banking 153

7. Creation and Regulation of Bank Liquidity 181

10. Payments 285

15. Residential Mortgages 470

16. Securitization 503

17. Shadow Banking 530

20. Bank Bailouts and Bail-Ins 630

22. Bank Capital Requirements after the Financial Crisis 707

23. Market Discipline in Regulation: Pre and Post Crisis 736

24. Competition in the Banking Sector 776

27. Hardy Perennials: Banking Crises Around the World 885

33. Banking in Japan: A Post-global Financial Crisis Perspective 1033

34. Banking in Africa 1076

35. Banking in China 1113

37. Banking in Latin America: Developments and Prospects 1152

15.8 Primary-Secondary Mortgage Market Spread 488

22.5 Increase in the Quality of Capital (Cross Sections) 731

34.9 Gaps in Account Penetration in Sub-Saharan Africa 1094

19.1 LOLR Actions by the FED in the 2007–9 Crisis 621

34.3 Account Penetration over Time and across Countries 1093