A Political Economy of Banking Supervision: Missing a Chance

This book explores the impact of banking on the real economy and society, emphasizing the importance of banking supervision in steering financial activities and determining social outcomes. It highlights the asymmetry of risks in banking and the need for tight supervision to improve stability and promote economic growth.

Format: Paperback / softback
Length: 181 pages
Publication date: 20 June 2021
Publisher: Springer Nature Switzerland AG

This book delves into the intricate relationship between banking and the real economy, with a particular emphasis on banking supervision as the key determinant in steering financial activities and shaping the social consequences of the financial game. Banking can be likened to the heart of our society, responsible for ensuring the smooth functioning of the economy. However, if it malfunctions, it can become a ticking time bomb, posing significant risks and consequences. This creates an imbalance of risks, where the potential dire outcomes are vastly overshadowed by the modest rewards associated with taking such risks.

Banking played a pivotal role in the transition from the Middle Ages to the modern era, enabling the development of society as we know it today. However, despite its historical significance, banking's contribution to economic growth has diminished in recent years. Nevertheless, its malfunctioning has far-reaching and lasting adverse effects on society.

The book aims to answer the critical questions of why banking supervision is essential, how it can enhance stability in the financial system and the broader society, and what went wrong with previous regulatory approaches. It explores the complex dynamics between banks, financial markets, and the real economy, shedding light on the mechanisms that contribute to financial crises and the challenges faced by policymakers in managing them.

Through a comprehensive analysis of historical events, economic theories, and empirical evidence, the book provides valuable insights into the role of banking supervision in shaping the social and economic landscape. It offers practical recommendations for improving banking regulation and supervision, ensuring that the financial system remains robust and resilient in the face of future challenges.

In conclusion, this book is a must-read for anyone interested in understanding the impact of banking on the real economy and society. It offers a comprehensive and insightful examination of the key factors that drive banking activities and their social consequences. By exploring the past, present, and future of banking supervision, it provides valuable insights into the challenges and opportunities facing policymakers, financial institutions, and individuals alike.

Weight: 454g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030485498
Edition number: 1st ed. 2020