Capital Markets and Financial Intermediation [Hardcover]

This volume reviews recent theories of banking and finance and assesses the implications for policy-making in Europe.European financial integration raises major policy issues about the risks of banking competition and the appropriate regulation of banks and other financial intermediaries. These current theoretical papers shed light on banking and security markets and competition.European financial integration raises major policy issues about the risks of banking competition and the appropriate regulation of banks and other financial intermediaries. These current theoretical papers shed light on banking and security markets and competition.Financial intermediation is currently a subject of active academic research on both sides of the Atlantic. European financial integration raises major policy issues about the risks of banking competition and the appropriate regulation of banks and other financial intermediaries. The choice of Anglo-American vis-à-vis Continental European forms of financial markets is also central to Eastern Europe's transformation. This volume contains theoretical papers at the forefront of academic research that shed light on banking and security markets and banking competition.1. Introduction Colin Mayer and Xavier Vives; 2. Efficient governance structure: implications for banking Mathias Dewatripont and Jean Tirole; 3. Bank loan maturity and priority when borrowers can refinance Douglas Diamond; 4. Stock markets and resource allocation Franklin Allen; 5. Informational capacity and financial collapse Douglas Gale; 6. Financial intermediation and economic development Robert G. King and Ross Levine; 7. Creditor passivity and bankruptcy: implications for economic reform Janet Mitchell; 8. Enterprise debt and economic transformation: restructuring in Central and Eastern Europe David Begg and Richard Portes; 9. Bank regulation reputation and rents: theory and political implications Arnoud W. Boot and Stuart Greenbaum; 10. Relationship bankil“"