Publication: Smaller but Safer?
Date
2009-06
ISSN
Published
2009-06
Author(s)
Stephanou, Constantinos
Abstract
Global trends taken for granted in
recent decades, the big expansion in global financial assets
compared with underlying economic activity, growing global
financial integration, shrinking role of the state in
financial systems, and rising share of cross-border
ownership of financial institutions, may reverse over the
foreseeable future. In addition, the structure of financial
systems, particularly in developed countries, will likely
become oriented less toward capital markets and more toward
traditional (and simpler) banking activities. The impact on
economic growth and overall welfare is likely to be
negative, perhaps the price author have to pay for living in
a brave new (and presumably safer) financial world.
Citation
“Stephanou, Constantinos. 2009. Smaller but Safer?. Crisis Response Note; No. 3. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/27c568c1-998b-5b36-b758-350749061433 License: CC BY 3.0 IGO.”