Institutional success in a sticky regulatory environment - narrow banks versus US commercial banks

Article Abstract:

Geoffrey Miller argues that commercial banking may be becoming obsolete. US commercial banks have been tightly regulated. Miller sees mutual funds as virtual narrow banks which are likely to take over part of the market share of commercial banks in the US. The US regulatory system encourages inefficiency and the emergence of a new alternative institution should not distract us from the inefficiencies resulting from the regulatory system. There is a need for a deeper theoretical investigation of institutional comparisons.

United States, Laws, regulations and rules

---

Are money market mutual funds an alternative for banks?

Article Abstract:

There have been changes in the US financial services industry, and commercial banks have reduced their share of financial assets, while mutual funds have increased their share. Money market funds (MMFs) are offered by some banks as part of a wider trend of new banking services. MMF shares appear to be replacing some bank deposits. The government is likely to intervene if the failure of MMFs appears likely to create serious macro-economic problems. MMFs may be relatively safe, but they can still fail.

---

Mutual funds as an alternative banking system

Article Abstract:

Ken Scott argues that mutual funds could take over the role of banks in providing payments services, with checks being written on mutual fund accounts as they are with banks. Mutual funds could be admitted to the payments clearing system, but this would not turn them into banks. There are a number of issues that need to be investigated further, such as monetary policy and the role of central banks. The implications of Scott's suggestion go beyond his explanations.

Similar abstracts:

• Abstracts: A DNS-curve in a two-state capital accumulation model: a numerical analysis. Keeping up with the technology pace: A DNS-curve and a limit cycle in a technology investment decision problem
• Abstracts: Informational effects of regulation FD: evidence from rating agencies
• Abstracts: Expanded competitiveness and regulatory safeguards in local telecommunications markets. Realignment in telecommunications
• Abstracts: A note on the core of a monetary economy. Economies with many commodities
• Abstracts: The limiting distribution of post-sample stability tests for GMM estimation when the potential break date is unknown

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.