The Structure and Regulation of Financial Markets

by Spencer, Peter D.

• ISBN13: 9780198776093
• ISBN10: 0198776098
• Format: Hardcover
• Copyright: 2000-12-14
• Publisher: Oxford University Press

Summary

This lucid text brings together and explains the main theoretical developments in economic thinking about financial markets, institutions, and regulations over the last twenty-five years. It relates the theory of asymmetric information to the main financial developments in the US, UK, and other Anglo-Saxon countries. After a preliminary discussion of financial markets and their transparency, it looks at the role of financial intermediaries such as banks. It argues that these institutions can compete with efficient markets because they are confidential. The book goes on to discuss bank credit rationing, bank failure and systemic risk, and the way in which regulation can control these risks.

Author Biography

Peter D. Spencer is Professor of Financial Economics at Birkbeck College, London and Economic Adviser to the Ernst & Young ITEM Forecasting Club.

Table of Contents

Introduction: Asymmetric Information in Financial Markets	1	(23)
Adverse Selection and the Market for Retail Financial Services	23	(26)
The Structure and Regulation of Insurance Markets	49	(26)
Capital Market Microstructure and Regulation	75	(24)
Information Revelation, Transparency, and Insider Regulation	99	(16)
Security Research and Regulation	115	(22)
The Equity Market and Managerial Efficiency	137	(22)
The Theory of Financial Intermediation	159	(18)
Convexity, Excessive Risk, and Bank Regulation	177	(16)
Bank Runs, Systemic Risk, and Deposit Insurance	193	(16)
Bank Regulation in Practice	209	(24)
Financial Structure and Regulation	233	(14)
References	247	(10)
Index	257