A Functional Analysis of the Banking Industry

Riccardo Zolea

No 269, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: This paper proposes a functional analysis of input, output and capital of the banking sector in an endogenous money framework with the aim of determining the aggregates on which to calculate the bank profit rate. Although banks create bank money, State money is not producible by banks, which need it as an input. Deposits are the cheapest source of central bank money already in the system, so it can be argued that deposits are inputs to the banking industry. Assuming that loans are the banking output, we investigate what role regulation plays in defining a banking production technique. The framework developed from Basel Accords imposes a level of equity proportional to the level of risk-weighted bank assets. Thus, a bank capital-to-output ratio defined by these rules is conceivable.

Keywords: Bank; deposit; capital; input-output analysis; post-Keynesian approach; MMT. (search for similar items in EconPapers)
JEL-codes: E12 E51 G21 (search for similar items in EconPapers)
Pages: 34
Date: 2022-06
New Economics Papers: this item is included in nep-ban, nep-eff, nep-hme, nep-mac and nep-pke
References: Add references at CitEc
Citations:

Downloads: (external link)
https://economia.uniroma3.it/wp-content/uploads/si ... d/2022/06/WP_269.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rtr:wpaper:0269

Access Statistics for this paper

More papers in Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre Via Silvio d'Amico 77, - 00145 Rome Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Telephone for information ().