List of Figures ................................................ xv
List of Tables .............................................. xviii
List of Abbreviations ......................................... xxi
List of Contributors ........................................ xxvii
l Banking: An Overview ......................................... 1
Allen N. Berger, Philip Molyneux, and John O.S. Wilson
I. THE THEORY OF BANKING
2 The Roles of Banks in Financial Systems ..................... 37
Franklin Allen and Elena Carletti
3 The Accelerating Integration of Banks and Markets and its
Implications for Regulation ................................. 58
Arnoud W.A. Boot and Anjan V. Thakor
4 Risk Management in Banking .................................. 90
Linda Allen and Anthony Saunders
5 Liquidity Production in Twenty-first-century Banking ....... 112
Philip E. Strahan
6 Diversification in Banking ................................. 146
Kevin J. Stiroh
7 Universal Banking .......................................... 171
Alan D. Morrison
8 The Corporate Structure of International Financial
Conglomerates: Complexity and its Implications for Safety
and Soundness .............................................. 195
Richard Herring and Jacopo Carmassi
II. REGULATORY AND POLICY PERSPECTIVES
9 Central Banking ............................................ 233
Michel Aglietta and Benoit Mojon
10 The Role of Banks in the Transmission of Monetary Policy ... 257
Joe Peek and Eric S. Rosengren
11 Lender of Last Resort and Bank Closure Policy .............. 278
Xavier Freixas and Bruno M. Parigi
12 Regulation and Supervision: An Ethical Perspective ......... 315
Edward J. Kane
13 Deposit Insurance .......................................... 339
Robert A. Eisenbeis and George G. Kaufman
14 Risk-based Regulatory Capital and Basel II ................. 357
Michael B. Gordy and Erik A. Heitfield
15 Market Discipline in Bank Supervision ...................... 377
Mark J. Flannery
16 Competition and Antitrust Policy in Banking ................ 405
Astrid A. Dick and Timothy H. Hannan
17 World Trade Organization Commitments vs. Reported
Practices on Foreign Bank Entry and Regulation: A Cross-
country Analysis ........................................... 430
James R. Barth, Juan A. Marchetti, Daniel E. Nolle,
and Wanvimol Sawangngoenyuang
III. BANK PERFORMANCE
18 Efficiency in Banking: Theory, Practice, and Evidence ...... 463
Joseph P. Hughes and Loretta J. Mester
19 Technological Change, Financial Innovation, and Diffusion
in Banking ................................................. 486
W. Scott Frame and Lawrence J. White
20 Banking Globalization: International Consolidation and
Mergers in Banking ......................................... 508
Claudia M. Buch and Gayle L. DeLong
21 Small Business Lending ..................................... 531
Allen N. Berger
22 Consumer Lending ........................................... 550
Thomas A. Durkin and Gregory Elliehausen
23 Residential Mortgages ...................................... 565
Andreas Lehnert
24 Securitization: Instruments and Implications ............... 599
David Marques Ibanez and Martin Scheicher
IV. MACROECONOMIC PERSPECTIVES IN BANKING
25 Systemic Risk in Banking: An Update ........................ 633
Olivier de Bandt, Philipp Hartmann, and José Luis Peydró
26 Banking Crises ............................................. 673
Gerard Caprio Jr and Patrick Honohan
27 The Great Depression and other 'Contagious' Events ......... 693
Charles W. Calomiris
28 Payments Systems ........................................... 711
David Humphrey and James McAndrews
29 Finance and Economic Development: The Role of Government ... 729
Asli Demirgüç-Kunt
30 Banking and Real Economic Activity ......................... 756
Nicola Cetorelli
V. INTERNATIONAL DIFFERENCES IN BANKING STRUCTURES AND
ENVIRONMENTS
31 Banking in the United States ............................... 777
Robert DeYoung
32 Banking in the European Union .............................. 807
John Goddard, Philip Molyneux, and John O.S. Wilson
33 Banking in Transition Countries ............................ 844
John P. Bonin, Iftekhar Hasan, and Paul Wachtel
34 Banking in Latin America ................................... 868
Fernando J. Cardim de Carvalho, Luiz Fernando de Paula,
and Jonathan Williams
35 Banking in Japan ........................................... 903
Hirofumi Uchida and Gregory Udell
36 Banking in Developing Nations of Asia: An Overview of
Recent Changes in Ownership Structure ...................... 941
Leora Klapper, Maria Soledad Martinez-Peria, and Bilal
Zia
Index ......................................................... 964
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