Coverart for item
The Resource Banking and trading, prepared by Arnoud W.A. Boot and Lev Ratnovski, (electronic resource)

Banking and trading, prepared by Arnoud W.A. Boot and Lev Ratnovski, (electronic resource)

Label
Banking and trading
Title
Banking and trading
Statement of responsibility
prepared by Arnoud W.A. Boot and Lev Ratnovski
Creator
Contributor
Subject
Language
eng
Summary
We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank engages in trading, it can use its 'spare' capital to profitablity expand the scale of trading. However, there are two inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex-ante. And a bank may use trading for risk-shifting. Financial development augments the scalability of trading, which initially benefits conglomeration, but beyond some point inefficiencies dominate. The deepending of the financial markets in recent decades leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will persist for the foreseeable future. The analysis has implications for capital regulation, subsidiarization, and scope and scale restrictions in banking
Member of
http://library.link/vocab/creatorDate
1960-
http://library.link/vocab/creatorName
Boot, Arnoud W. A.
Dewey number
332.1
Government publication
international or intergovernmental publication
Index
no index present
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Ratnovski, Lev
  • International Monetary Fund
Series statement
IMF working paper
Series volume
WP/12/238
http://library.link/vocab/subjectName
  • Banks and banking
  • Commerce
Label
Banking and trading, prepared by Arnoud W.A. Boot and Lev Ratnovski, (electronic resource)
Instantiates
Publication
Note
  • Title from PDF title page (IMF Web site, viewed Oct. 5, 2012)
  • "Research Department."
  • "October 2012."
Bibliography note
Includes bibliographical references
Control code
ocn812041171
Extent
1 online resource (48 pages)
Form of item
online
Isbn
9781475512472
Note
eBooks on EBSCOhost
Specific material designation
remote
System control number
(OCoLC)812041171
Label
Banking and trading, prepared by Arnoud W.A. Boot and Lev Ratnovski, (electronic resource)
Publication
Note
  • Title from PDF title page (IMF Web site, viewed Oct. 5, 2012)
  • "Research Department."
  • "October 2012."
Bibliography note
Includes bibliographical references
Control code
ocn812041171
Extent
1 online resource (48 pages)
Form of item
online
Isbn
9781475512472
Note
eBooks on EBSCOhost
Specific material designation
remote
System control number
(OCoLC)812041171

Library Locations

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