Advertisement

Risk in a Changing Environment

  • Erik Banks
Part of the Finance and Capital Markets Series book series (FCMS)

Abstract

In the decades preceding the 1970s banking was a relatively ordinary and well understood business. Banks were at the same time intermediaries between suppliers and users of funds and managers (and sometimes takers) of risk. Profitability was good, risks were acceptable, competition, though present, was not especially intense and innovation was generally slow. The clear division in countries such as the US and Japan between commercial banking and investment banking, with no real encroachment on one another’s territory, added to the relatively comfortable worlds of each business. Even in European countries, where the concept of ‘universal banking’ was already widely practised (where an institution could have a presence in retail, institutional and investment banking), a few dominant banks controlled the market and were not under pressure to innovate, change or compete.

Keywords

Financial Institution Credit Risk Commercial Bank Financial Instrument Corporate Bond 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Erik Banks 1993

Authors and Affiliations

  • Erik Banks
    • 1
  1. 1.TokyoJapan

Personalised recommendations