Banking Structures in Major Countries

620 Pages·1992·34.567 MB·English

by  Lawrence Kryzanowski, Gordon S. Roberts (auth.), George G. Kaufman (eds.)

Banking Structures in Major Countries
Innovations in Financial Markets
and Institutions
Editors:
Robert A. Eisenbeis and Richard W. McEnally
University of North Carolina at Chapel Hill
Chapel Hill, North Carolina, U.S.A.
Other books In the series:
England, C. and Huertas, T.:
THE FINANCIAL SERVICES REVOLUTION
Gup, B.:
BANK MERGERS: CURRENT ISSUES AND
PERSPECTIVES
Kormendi, R., Bernard, V., Pirrong, S., and
Snyder, E.:
CRISIS RESOLUTION IN THE THRIFT
INDUSTRY
Hancock, D.:
A THEORY OF PRODUCTION FOR THE
FINANCIAL FIRM
Banking Structures in Major Countries
Edited by
George G. Kaufman
Loyola University of Chicago
Springer Science+Business Media, LLC
Library of Congress Cataloging-in-Publication Data
Banking structures in major countries/edited
by George G. Kaufman.
p. cm.-(Innovations in financial markets and
institutions) Includes bibliographical references and
index.
ISBN 978-94-010-5308-2 ISBN 978-94-011-2946-6 (eBook)
DOI 10.1007/978-94-011-2946-6
1. Banks and banking-Europe. 2. Banks and banking
-United States. 3. Banks and banking-Canada.
4. Banks and banking-Japan. 5. Banks and banking
China. I. Kaufman, George G. 11. Series.
HG2974.B36 1991
332.1-dc20 90-6621
CIP
Copyright © 1992 Springer Science+Business Media New York
Originally published by Kluwer Academic Publishers in 1992
Softcover reprint of the hardcover 1s t edition 1992
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system or transmilted in any form or by any means,
mechanical, photocopying, recording, or otherwise, without the prior
wrilten permission 01 the publisher, Springer Science+Business Media, LLC.
Printed on acid·free paper.
Contents
About the Authors vii
Preface xiii
Bank Structure in Canada
Lawrence Kryzanowski and Gordon S. Roberts
2 59
Bank Structure in Chile
Sergio de la Cuadra and Salvador Valdes-Prieto
3 113
Banking Structure of China
Zhou Lin
4 1~
Banking in the European Economic Community: Structure, Competition,
and Public Policy
Joseph Bisignano
5 245
The French Financial System
L. Beduc, F. Ducruezet, and P. Papadacci
6 293
The Structure of the Italian Financial System
G.P. Szeg6 and V.S. Szeg6
7 333
The Evolution of Japanese Banking and Finance
Thomas F. Cargill and Shoichi Royama
v
vi CONTENTS
8 389
Bank Structure in Switzerland
Urs W. Birchler and Georg Rich
9 429
The British Financial System
David T. Llewellyn
10 469
The United States Financial System
Herbert L. Baer and Larry R. Mote
11 555
Bank Structure in West Germany
Randall Johnston Pozdena and Vol bert Alexander
Index 595
About the Authors
George G. Kaufman is the John F. Smith Jr. Professor of Finance and
Economics at Loyola University of Chicago. He previously taught at the
University of Oregon and was an economist at the Federal Reserve Bank
of Chicago. He has been a visiting professor at Stanford University and
the University of California at Berkeley, a visiting scholar at the Federal
Reserve Bank of San Francisco and the Comptroller of the Currency,
and also served as the deputy to the assistant secretary for economic
policy at the U.S. Treasury Department. He is a member of the board of
directors of the Rochester (NY) Community Savings Bank and was an
elected trustee of the College Retirement Equities Fund.
Professor Kaufman has published widely in professional journals and
authored/edited many books including; The U.S. Financial System
(Prentice-Hall, 4th edition, 1989), Restructuring the American Financial
System (Kluwer, 1990), Perspectives on Safe and Sound Banking (MIT
Press, 1986), and Deregulating Financial Services (Ballinger, 1986). He is
a co-editor of the Journal of Financial Services Research and an associate
editor of the Journal of Money, Credit, and Banking, the Financial
Review, and The Journal of Financial Research. He has testified numerous
times before Congress. He has been honored by his peers by being
elected president of both the Western Finance and the Midwest Finance
Associations. Kaufman is co-chair of the Shadow Financial Regulatory
Committee.
Volbert Alexander is professor of economics at the Justus-Liebig
University Giessen (West Germany). He formerly was professor of
economics at the University of Siegen. He obtained his Ph.D. in economics
vii
Vlll ABOUT THE AUTHORS
and a postdoctoral degree in economics from the University of Konstanz.
His main fields of interest are monetary macroeconomics, monetary and
fiscal policy and monetary theory.
Herbert L. Baer, Jr. is an assistant vice president and senior economist
at the Federal Reserve Bank of Chicago where he studies the regulation
of the financial services industry. He holds a Ph.D. in economics from
Northwestern University. He has published studies on the S&L industry,
regulatory taxes, international banking, the control of systemic risk in
financial markets and regulatory reform in a number of journals and has
also published in several books and conference volumes.
Louis Beduc graduated from the Institute of Political Studies in Paris
and received his masters in economics from the University of Paris. He
has been an executive at the Bank of France since 1988 and works in the
monetary statistics and studies division where he focuses on flow of funds
statistics, financial forecasts, and public finance.
Urs Birchler has a Ph.D. in economics from Zurich University in 1980.
He is head of the banking studies section of the Swiss National Bank in
Zurich.
Joseph Bisignano is assistant manager of the monetary and economic
department at the Bank for International Settlements (BIS) in Basel,
Switzerland. He has a B.A. from the University of Buffalo, M.B.A. from
Columbia University, and Ph.D. from Stanford. He previously was senior
vice president and director of research at the Federal Reserve Bank
of San Francisco and has taught economics at Rutgers and Stanford
Universities.
Thomas F. Cargill received his Ph.D. from the University of California
at Davis and teaches at the University of Nevada, Reno. He has published
extensively in the areas of financial markets and monetary policy and has
been a visiting scholar at several major regulatory agencies in both the
United States and Japan. His latest book is Central Book Independence
and Regulatory Responsibilities: The Bank of Japan and the Federal
Reserve.
Sergio de la Cuadra received his M.A. and Ph.D. from the University
of Chicago. He is currently the president of Sergio de la Cuadra y
Asociados S.A.; chairman of the Board Distribution Chilectra Metro
politana S.A. and member of the Board Bolsa de Valores de Chile. He
previously served as Governor of the Central Bank of Chile, Minister of
Finance, member of the board of Banco de Chile and of several other
corporations and as professor at the Catholic University of Chile.
Francoise Ducruezet graduated from the Institute of Political Studies in
Paris and received her law degree from the University of Paris. She has
ABOUT THE AUTHORS ix
been an executive at the Bank of France since 1977 and worked in the
banking supervision department until 1986. Since 1986, she has worked in
the monetary statistics and studies division, concentrating on financial
national accounts.
Lawrence Kryzanowski is professor of finance of Concordia University
(Canada). He received his B.A. from the University of Calgary and
his Ph.D. from the University of British Columbia and has visited the
University of British Columbia, the University of Rochester and the
Canadian Federal Department of Finance. He is the co-author of a major
Canada finance textbook, the author of a number of other books and has
published widely in leading journals in finance and economics. He is also
a former co-editor of the Canadian Journal of Administrative Sciences.
Zhou Lin received his B.A. in economics from Northeastern University
of China and an M.A. from Southwest Union University in China. He
also received an M.A. in economics from the University of Wisconsin at
Madison. He was a division chief and department head at the Bank of
China and visiting professor at California State University at Northridge.
He is currently research fellow and professor at the Research Institute of
Finance and Banking of the People's Bank of China and counsellor at the
State Council of the People's Republic of China.
David Llewellyn is professor of money and banking and chairman of
the Loughborough University Banking Centre. He has formerly held
economics posts at the British Treasury, the International Monetary Fund,
and Nottingham University. He has written extensively in the areas of
international finance, U.K. financial markets and institutions and regula
tion in finance, and has served as a consultant to several financial institu
tions and regulatory agencies in various countries.
Larry R. Mote is an economic adviser and vice president at the Federal
Reserve Bank of Chicago. He is a graduate of the University of Maryland
and was Fulbright Scholar at the University of Cologne, before doing
graduate work in economics at Cornell University. He has been a visiting
professor of finance at the University of Oregon and is currently a visiting
scholar with the Congressional Budget Office. He has published exten
sively on issues on banking structure and the Glass-Steagall Act.
Randall Johnston Pozdena is vice president in charge of finance, banking
and regional research at the Federal Reserve Bank of San Francisco.
Before assuming his present position, he was a professor of economics
and a management consultant. He holds an undergraduate degree in
economics from Dartmouth College and a PhD in economics from the
University of California, Berkeley. He has written articles on a wide
variety of topics, including bond market behavior, international banking,
x ABOUT THE AUTHORS
the payments system, and corporate financial structure and is the author
of a book on housing.
Salvador Valdes Prieto received his Ph.D. in economics from the
Massachusetts Institute of Technology. He currently is assistant professor
of economics at University Catolica de Chile. His main areas of interest
are financial systems, industrial organization and macroeconomics. He
has written a number of articles on these topics in scholarly journals. He
has worked in Chile as assistant to the Minister of Economics and as a
consultant to the Superintendence of Banks, the Central Bank and the
Finance Legislative Committee.
Georg Rich is chief economist and a director of the Swiss National
Bank in Zurich. After completing his undergraduate studies at the Uni
versity of Zurich, he obtained a Ph.D. in economics from Brown Univer
sity in 1969. Until 1977, he taught at Carleton University in Ottawa
(Canada) and served as chairman of the economics department from 1972
to 1974. He is author of a book and numerous scholarly articles.
Gordon Roberts is the Bank of Montreal Professor of Finance at
Dalhousie University (Canada). He received his B.A, from Oberlin
College and his Ph.D. from Boston College. He has been a visiting
faculty member at the University of Arizona, the University or Victoria,
the University of Zimbabwe and Xiamen University (China). He has
published widely in finance and economic journals and serves on the
editorial board of three journals.
Shoichi Royama is professor of money and banking at Osaka Univer
sity. He attended Tokyo University and received his Ph.D. from Osaka
University. He has been a scholar at the Bank of Japan and has been
involved in a number of research projects for the Ministry of Finance
regarding the future structure of Japanese banking. He has published
extensively in Japanese and English. His most recent publication in English
is The Transition of Finance in Japan and the United States: A Comparative
Perspective.
Pierre Papadacci Stephanopoli graduated in economics from the
Universite d'Aix-Marseille. He has been an executive at the Bank of
France since 1977 and worked in the electroni~ data processing depart
ment until 1986. Since 1986, he has worked in the monetary statistics
and studies division, concentrating on monetary and banking statistics.
Giorgio Szego is professor of banking and finance at the University La
Sapienza in Rome and director of the Post Graduate School in Banking
Policy and Law at the same university. He previously taught at the
Universities of Bergamo, Venice and Milano and was rector of the Uni
versity of Bergamo for nine years. He has been visiting professor at