On the obsolescence of commercial banking

Article Abstract:

Mutual fund banking is a payments system using liabilities backed by a portfolio of liquid stocks. This system is free from the risk of panics or runs, so is preferable to commercial banking in the traditional sense. Money market checking funds are growing in the US, and are showing the benefits of mutual fund banking. Commercial banking offers transaction services using an assets and liability portfolio that is mismatched. Short-term money markets have developed enough to permit mutual fund banking.

History, Mutual funds

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Universal banking 'American style.'

Article Abstract:

US banks underwent a process of convergence in the 1980s and 1990s and foreign banks are likely to follow the lead of US banks. Global competition has become entrenched as a result of new technologies that cannot easily be regulated. Competition outside the banking industry will lead to changes in banking systems outside the US. Securitization of risk is becoming more common. Relationship banking allows banks to function more profitably, and economies of scope are becoming more important.

United States, Universal banks

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Similar abstracts:

• Abstracts: Universal banking in historical perspective. Universal banking. The 'battle of the systems.'(comment on paper by Richard Tilly)

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