WHAT SHOULD BANKS REALLY DO?

Lawrence White

Contemporary Economic Policy, 1992, vol. 10, issue 3, 104-112

Abstract: With banking currently in turmoil, a new formula for bank structure and activities, for deposit insurance, and for bank regulation is necessary. This paper reviews the dilemmas of the current structure of banking in the United States and explains how the banking sector arrived at its current state of crisis. It then suggests three alternative formulas, along with their advantages and disadvantages, that could provide the future framework for banking, deposit insurance, and regulation.

Date: 1992
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