The Efficiency and Stability of Banks and Markets

Franklin Allen ()

Research series from National Bank of Belgium

Abstract: Traditionally, financial systems have been bank-based or market-based. The efficiency properties of these systems are compared in various dimensions. These include risk sharing, information provision, funding new industries, corporate governance, and law, finance and politics. Both systems have advantages and disadvantages. With regard to stability, both bank-based and market-based systems are subject to crises. Going forward a financial system with financial intermediaries and markets would have many advantages and few disadvantages.

New Economics Papers: this item is included in nep-fin
Date: 2004-05
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Persistent link: http://EconPapers.repec.org/RePEc:nbb:reswpp:200405-8

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