Metrics

  • citations in SCIndeks: [1]
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:0
  • full-text downloads in 30 days:0

Contents

article: 3 from 8  
Back back to result list
2013, vol. 42, iss. 5, pp. 54-79
The rise and decline of universal banking
aMegatrend University, Faculty of Business Studies, Belgrade
bMegatrend University, Faculty of International Economics, Belgrade

emailsvuckovic@megatrend.edu.rs, vprvulovic@megatrend.edu.rs
Abstract
The contemporary crisis has reopened the old dilemmas about the separation of commercial and investment banking. Indisputable facts about what caused the crisis speak in favor of the thesis that the frenzied exotic operations with securities were the main trigger of the financial breakdown. The biggest roles were played by investment banks, as the main players in this market segment, hence the potential solution for preventing future financial problems imposed itself in the form of separating investment and commercial banking operations. The major argument is not to allow the taxpayers' money to once again heel the problems of private banks, problems caused by bad judgments and decisions on the part of ambitious and imprudent managers. In its first part, the paper focuses on the development of universal banking and the clarification of specific political and social circumstances relevant for the adoption of the first law regulating universal banks. The paper moves on to indicate the advantages and disadvantages of this concept, whereas its final section sums up the frameworks of the new stricter regulations and recommendations in this field of the financial market.
References
Allen, B., Chan, K.K., Milne, A., Thomas, S. (2012) Basel III: Is the cure worse than the disease?. International Review of Financial Analysis, 25: 159-166
Barber, L. (2013) The fall of universal banks. Economist, http://www.economist. com/news/21566439-exit-rock-star-bossesfall-universal-bank, 03/07/2013
Ber, H., Yafeh, Y., Yosha, O. (2001) Conflict of interest in universal banking: Bank lending, stock underwriting, and fund management. Journal of Monetary Economics, 47(1): 189-218
Blundell-Wignall, A. (2011) On the necessity of separating investment and commercial banking. Intereconomics, 46(6): 298-299
Boyd, J.H. (1999) Expansion of commercial banking powers … or, universal banking is the cart, not the horse. Journal of Banking & Finance, 23(2-4): 655-662
Cabral, R. (2013) A perspective on the symptoms and causes of the financial crisis. Journal of Banking & Finance, 37(1): 103-117
Casserley, D., Harle, P., Macdonald, J. (2009) Should commercial and investment banking be separated?. London: McKinsey & Company Report
Dietrich, D., Vollmer, U. (2012) Are universal banks bad for financial stability? Germany during the world financial crisis. Quarterly Review of Economics and Finance, 52(2): 123-134
Greenspan, A. (2007) Age of turbulence. New York: Penguin Press
Heffernan, S. (2005) Modern banking in theory and practice. Chichester: John Wiley & Sons
Krugman, P. (2008) The return of depression economics and the crisis of 2008. W.W. Norton Company Limited
Mitchener, K.J., Richardson, G. (2013) Does “skin in the game” reduce risk taking? Leverage, liability and the long-run consequences of new deal banking reforms. Explorations in Economic History, 50(4): 508-525
Mitchener, K.J., Wheelock, D.C. (2013) Does the structure of banking markets affect economic growth? Evidence from U.S. state banking markets. Explorations in Economic History, 50(2): 161-178
Neal, L., White, E.N. (2012) The Glass-Steagall Act in historical perspective. Quarterly Review of Economics and Finance, 52(2): 104-113
Neuhann, D., Saidi, F. (2012) The rise of the universal bank: Financial architecture and firm volatility in the United States. http://w4.stern.nyu.edu/finance/docs/pdfs/Seminars/123f-saidi.pdf, 03/07/2013
Pavlović, V., Ljumović, I. (2009) Finansijska regulativa u SAD kao pokretač aktuelne svetske krize. Računovodstvo, vol. 53, br. 5-6, str. 78-93
Peláez, C.M., Peláez, C.A. (2009) Financial regulation after the global recession. Besingstoke: Palgrave Macmillan
Ross, L. (1997) Financial Development and Economic Growth. Journal of Economic Literature, American Economic Association, 2: 717-718
Rothbard, M. (2002) A history of money and banking in the United States. Ludwig von Mises Institute
Schilbach, J. Universal banks: Optimal for clients and financial stability. Deutsche bank research, Internet, http://www.dbresearch.com/PROD/DBR_INTERNET_ENPROD/PROD0000000000296976.pdf, 03/07/2013
Tabarrok, A. (1998) The separation of commercial and investment banking: The morgans vs. The rockefellers. Quarterly Journal of Austrian Economics, 1(1): 1-18
Vallascas, F., Keasey, K. (2012) Bank resilience to systemic shocks and the stability of banking systems: Small is beautiful. Journal of International Money and Finance, 31(6): 1745-1776
Volcker, P. Ring-fencing banks is not enough. Telegraph, http://www.telegraph.co.uk/finance/newsbysector/ banksandfinance/9561624/Paul-Volckerring-fencing-banks-is-not-enough.html, 03/07/2013
Walter, I. (2012) Universal banking and financial architecture. Quarterly Review of Economics and Finance, 52(2): 114-122
 

About

article language: Serbian, English
document type: Original Scientific Paper
published in SCIndeks: 23/01/2014

Related records

Anali Ekon fak Subotica (2010)
Structure analysis of the financial system in dependence of the business of banking sector in the financial market
Todorović Tomislav M., et al.

Ekonomika poljoprivrede (2010)
World financial crisis and its impact on the Serbian economy
Stevanović Simo V., et al.

Ekonomika preduzeća (2008)
Serbia: From transition to transitionism and back
Đuričin Dragan

show all [15]