Description
Book SynopsisThis book provides a compendium to the empirical work investigating the hypotheses generated by recent banking theory. Such a compendium is overdue. Since the publication of the The Microeconomics of Banking by Xavier Freixas and Jean Charles Rochet, work in empirical banking has further blossomed, not only in sheer volume but also in the variety of questions being tackled, datasets becoming available, and methodologies being introduced. This book follows the structure in Freixas and Rochet''s book and arranges the relevant methodologies, applications, and results according to each of their original chapters in order to have a coherent synthesis between available theory and supporting empirics. Each chapter in Microeconometrics of Banking contains a modest introduction (where possible and appropriate), a concise methodology section with one or more relevant methodologies, and several illustrative applications. In a muscular results section the authors summarize the main robust and semi
Trade ReviewThis is the perfect companion to the popular Freixas and Rochet theory book on the microeconomics of banking. Degryse, Kim, and Ongena do a superb job in linking recent advances in the empirical literature to existing theory of banking, offering students of financial intermediation a unique overview of the range of available econometric methods to analyze the behavior of financial institutions and their customers. The material is enriched by well-chosen applications and examples. The book fills a major gap in the literature and is a must read for anyone interested in the subject. * Luc Laeven, Senior Economist, International Monetary Fund *
Table of ContentsINTRODUCTION ; WHY DO FINANCIAL INTERMEDIARIES EXIST? ; THE INDUSTRIAL ORGANIZATION APPROACH TO BANKING ; THE LENDER-BORROWER RELATIONSHIP ; EQUILIBRIUM AND RATIONING IN THE CREDIT MARKET ; THE MACROECONOMIC CONSEQUENCES OF FINANCIAL IMPERFECTIONS ; INDIVIDUAL BANK RUNS AND SYSTEMIC RISK ; MANAGING RISKS IN THE BANKING FIRM ; THE REGULATION OF BANKS ; CONCLUSION ; EPILOGUE: THE BANKING CRISIS OF 2007-2008
