Institutional Credit Markets: Structure, Funding, and Regulation

Institutional Credit Markets provides an overview of the institutional funding markets that undergird the U.S. credit system, tracing the evolution of the depository bank model, non-bank competitors, and financial conglomerates. It also discusses post-crisis regulation and the Federal Reserve's role as an arbiter of financial market structure.

Format: Hardback
Length: 178 pages
Publication date: 18 April 2023
Publisher: Edward Elgar Publishing Ltd

The Institutional Credit Markets provide a comprehensive framework for understanding the intricate institutional funding markets that underpin the U.S. credit system. It traces the evolution of the depository bank model, its non-bank competitors, and the financial conglomerates that span credit and capital markets.

As securitization introduced structured credit products that reshaped credit markets, federal reforms allowed banks to venture into a broader range of financial services. Following the Global Financial Crisis, lawmakers affirmed pre-crisis products and business models while incorporating certain guardrails to mitigate future risks. The post-crisis scheme subjected large financial conglomerates to enhanced supervision while adjusting the structure of banks by making them more liquid and stable. Through its stabilization activities, the Federal Reserve has transitioned from a bank regulator to an arbiter of financial market structure, adopting a more statist approach to monetary policy that relies heavily on administered interest rates rather than those set by market forces.

This book offers a detailed account of post-crisis regulation in the context of its capitulation to financial capitalism. It is of immense value to financial law regulators and academics, as it provides an integrated perspective that considers banking, structured finance, capital markets, and money markets as integral components of an institutional funding ecosystem. Moreover, this book offers a nuanced understanding of financial institutions and markets for financial law practitioners, sector analysts, and journalists.

Dimension: 234 x 156 (mm)
ISBN-13: 9781788118361