A Stiglerian View on Banking Supervision

Friedrich Heinemann and Martin Schüler ()

Public Choice, 2004, vol. 121, issue 1, 99-130

Abstract: According to Stigler’s capture theoryregulation often follows the preferences of producers.Therefore, the interests of the financial industry might be amajor driving force for the ongoing supervisory reform debate.This paper identifies possible interests of the regulatedindustries: Either they might favour strict supervision tocreate barriers for entry. Or they might use their politicalinfluence to press for a lax and low-cost supervisory system.Our empirical results indicate that the private interest viewon banking regulation is indeed relevant and that the data ismore compatible with a “preference for laxity” than with a‘‘barriers to entry’’ view. Copyright Kluwer Academic Publishers 2004

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11127-004-5437-x (text/html)
Access to full text is restricted to subscribers.

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:kap:pubcho:v:121:y:2004:i:1:p:99-130

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11127/PS2

DOI: 10.1007/s11127-004-5437-x

Access Statistics for this article

Public Choice is currently edited by WIlliam F. Shughart II

More articles in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().