by Summary:
This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.I expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The
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Mike Norman considers the following as important:
This could be interesting, too:
This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.I expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.Bond EconomicsI expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The actual perspective of a bank with regards to its balance sheet strategy will have no resemblance to Economics 101 stories.…
Banking Debate Woes: Part II
Brian Romanchuk