Good banks and bad banks, centralised banks and local banks and economic growth

Victoria Chick, Sheila Dow and Carlos J. Rodríguez-Fuentes
Additional contact information
Carlos J. Rodríguez-Fuentes: University of La Laguna

EKONOMIAZ. Revista vasca de Economía, 2013, vol. 84, issue 03, 110-127

Abstract: The on-going banking crisis has demonstrated the significance of banking for economic growth. While banks as creators of money are important for the functioning of the economy, bank lending to productive enterprises is necessary for economic activity. Much of the international policy discussion supports the notion of reform of banking structure to allow banks to perform these two functions more effectively. On the one hand there is a discussion of separating traditional banking functions from those which exposed the system to excessive risk, i.e. separating ‘good’ banking from ‘bad’ banking. At the same time there has been discussion of the relative merits of large-scale banking concentrated in financial centres and smaller-scale local banking.

Keywords: Economic development; Financial institutions and services; Monetary Policy (search for similar items in EconPapers)
JEL-codes: E50 O16 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.ogasun.ejgv.euskadi.net/r51-k86aekon/es ... ubl=80&registro=1285 complete text (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:ekz:ekonoz:2013305

Ordering information: This journal article can be ordered from
Dpto. de Hacienda y Finanzas, Gobierno Vasco, C/Donostia-San Sebastián, 1, 01010 Vitoria-Gasteiz, Spain

Access Statistics for this article

More articles in EKONOMIAZ. Revista vasca de Economía from Gobierno Vasco / Eusko Jaurlaritza / Basque Government Contact information at EDIRC.
Bibliographic data for series maintained by Iñaki Treviño ().