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Narrow Banking

Annual Review of Financial Economics, 2012
This review discusses the history of narrow banks, reform proposals involving narrow banks, and theory and empirical evidence regarding whether narrow banks should play a more prominent role in the financial system. Prior to the early-twentieth century, US banks tended to be much narrower than they are today.
George Pennacchi
exaly   +3 more sources

Broad Banking, Financial Markets and the Return of the Narrow Banking Idea

Journal of Economic Asymmetries, 2010
Abstract We use a dynamic Keynesian multiplier and rate of return driven adjustment for stock prices to study the role of commercial banks when embedded into such an environment. We first consider a broad banking system where commercial banks are trading in stocks and credit. We show that such a scenario is likely to be unstable.
Christopher Malikane
exaly   +2 more sources

Recent Developments in Retail Banking in Scandinavia: Narrow v. Universal Banking

1997
Traditionally, banks have had a dominating role in the financial markets in Scandinavia1. There are at least two strong reasons for this. One is that banking has been a way of dealing with asymmetric information. Banks as financial intermediatries have a competitive advantage against individuals and the securities market in gathering information.
Ted Lindblom, Martin Andersson
exaly   +2 more sources

Narrow Banking: Theory, evidence and prospects in India [PDF]

open access: yes, 1998
The narrow banking proposal defining a class of safe and liquid assets (generally sovereign Government securities) for investments by weak banks, backed fully by demand liabilities (generally non-interest bearing deposits) has been considered as a means of deposit protection and a possible solution to the banking problems.
Ghosh, Saibal, Saggar, Mridul
core   +3 more sources

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