The New Finance

Regulation and Financial Stability

• Author(s): Franklin R. Edwards,
• Publisher: American Enterprise Institute
• Pages: 221
• ISBN_10: 0844739898
  ISBN_13: 9780844739892
  
• Language: en
• Categories: Business & Economics / Accounting / General , Business & Economics / Banks & Banking , Business & Economics / Economic History , Business & Economics / Finance / General , Business & Economics / Investments & Securities / General ,

Description:... Dramatic changes in information and telecommunications technologies have transformed U.S. financial markets in the 1980s and 1990s. This book examines the growth of mutual funds and derivatives markets and the decline of banks and explores implications of those developments for financial stability and regulatory policy. One of the book's central conclusions is that the current system of bank regulation is out of step with today's financial realities and needs to be substantially changed. Franklin Edwards asserts that the best way to increase the freedom of financial institutions to compete while making the financial system less vulnerable to excessive risk-taking by individual financial institutions is to adopt a system of collateralized banking.