Review of The Economics of Banking by Kent Matthews and John Thompson
The Economics of Banking by Kent Matthews and John Thompson is a comprehensive textbook that covers the theory and practice of banking in a clear and accessible way. The book is aimed at undergraduate and postgraduate students of economics, finance, business and management who want to learn about the role and functions of banks in the modern economy.
The book is divided into three parts. The first part provides an overview of the banking industry, its structure, regulation and performance. The second part focuses on the microeconomics of banking, explaining how banks operate as intermediaries, how they manage risks, how they compete and how they create value. The third part examines the macroeconomics of banking, exploring how banks affect monetary policy, financial stability and economic growth.
The book is updated to reflect the latest developments in the banking sector, such as the global financial crisis, the Basel III framework, the Dodd-Frank Act, the European Banking Union and the rise of fintech. The book also includes numerous examples, case studies, exercises and questions to help students apply their knowledge and test their understanding.
The Economics of Banking by Kent Matthews and John Thompson is a valuable resource for anyone who wants to learn more about the theory and practice of banking in the 21st century. The book is available in both print and e-book formats from Wiley.com.
The book consists of 12 chapters, each covering a different aspect of banking. The chapters are as follows:
Chapter 1: Introduction. This chapter introduces the main themes and objectives of the book, as well as the basic concepts and definitions of banking.
Chapter 2: The Structure and Regulation of Banking. This chapter describes the different types of banks and banking systems, as well as the main regulatory frameworks and agencies that govern them.
Chapter 3: The Performance of Banks. This chapter analyzes the financial statements and ratios of banks, as well as the sources and uses of bank funds.
Chapter 4: The Theory of Banking. This chapter explains the economic functions and roles of banks, such as intermediation, liquidity provision, maturity transformation and information production.
Chapter 5: Bank Risks and Risk Management. This chapter identifies and measures the various risks that banks face, such as credit risk, market risk, liquidity risk and operational risk, and how they can manage them using techniques such as diversification, hedging, securitization and capital adequacy.
Chapter 6: Bank Competition and Market Structure. This chapter examines the degree and determinants of competition and concentration in the banking industry, as well as the effects of market power on bank behavior and performance.
Chapter 7: Bank Lending and Credit Allocation. This chapter explores the process and criteria of bank lending, as well as the impact of bank credit on economic activity and development.
Chapter 8: Bank Deposits and Deposit Insurance. This chapter discusses the nature and characteristics of bank deposits, as well as the role and design of deposit insurance schemes to protect depositors and prevent bank runs.
Chapter 9: Bank Failures and Banking Crises. This chapter investigates the causes and consequences of bank failures and banking crises, as well as the policy responses and resolution mechanisms to deal with them.
Chapter 10: Banks and Monetary Policy. This chapter studies the transmission channels and effects of monetary policy on banks and the economy, as well as the role of central banks as lenders of last resort.
Chapter 11: Banks and Financial Stability. This chapter evaluates the sources and indicators of financial stability and instability, as well as the regulatory tools and frameworks to enhance financial stability, such as macroprudential regulation, stress testing and systemic risk management.
Chapter 12: Banks and Economic Growth. This chapter assesses the relationship between banking development and economic growth, as well as the challenges and opportunities for banking in emerging markets. 248dff8e21