theories of financial intermediation

8/16/2019 Theories of Financial Intermediation

1/38

THEORY OF FINANCIALINTERMEDIATION

Week 4

March 13 2014CXHB7105


2/38

Ec!"# $%&h M!e# a!'

Cre'%& De(c%&) *+r,-+* a!' .a-a!ce' .+'/e&

+!%&*

I each a!' eer# h+*eh-' e%&herc!*+"e' %&* e!&%re %!c"e r *,e!& %&*c!*+",&%! a!' %!e*&"e!& /'*) a--h+*eh-'* $+-' .e .a-a!ce' .+'/e& +!%&* ! *c,e r cre'%& r (!a!ce & ,-a# a r-e

Fr (!a!ce & ,-a# a r-e *"e ec!"%c+!%&* "+*& ch*e !& & .e .a-a!ce' .+'/e&+!%&*


3/38

F%!a!c%a- I!&er"e'%a&%! Tra!*er +!'* r" *+r,-+* & 'e(c%&

+!%&*

D%rec& (!a!c%!/ .rr$%!/ '%rec&-# r"-e!'er* A+c&%! "arke& cre'%&'e.& O!-# acce**%.-e & /er!"e!& a!' &her -ar/e

.rr$er*

I!'%rec& (!a!c%!/ /%!/ &hr+/h (!a!c%a-%!&er"e'%ar%e* I!&er"e'%ar%e* !e/&%a&e .e&$ee! .rr$er* a!'

-e!'er*


4/38

F%!a!c%a- I!*&%&+&%!* a!'

F%!a!c%a- I!&er"e'%ar%e* F%!a!c%a- I!*&%&+&%!

A .+*%!e** $h*e ,r%"ar# ac&%% %*

.+#%!/) *e--%!/ r h-'%!/ (!a!c%a-a**e&*

F%!a!c%a- I!&er"e'%ar# A .+*%!e** &ha& c!!ec&* *aer* $%&h

.rr$er*


5/38

T#,e* (!a!c%a-

%!*&%&+&%!* 1 De,*%&r# %!*&%&+&%!* 6.a!k*) cre'%& +!%!*) e&c

The%r "a%! -%a.%-%&%e* are 'e,*%&* a!' "a%! a**e&* are -a!* 2 F%!a!c%a- .rker*

I!e*&"e!& .a!k* The# *e-- !e$ *ec+r%&%e* r c",a!%e* The#

'!8& h-' 'e,*%&* r "ake -a!* Brkera/e H+*e* B+#*e-- -' *ec+r%&%e* ! .eha- %!'%%'+a-*

3 I!e*&"e!& %!*&%&+&%!* M+&+a- +!'* /e& "!e# r" *"a-- *aer* 6%!'%%'+a-*) $h .+#

*hare* %! &he +!'9 &he# %! &+r! %!e*& %! ar%e *&ck*) .!'*)e&c9 a--$ %!'%%'+a-* & :,-; &he%r *a%!/*) '%er*%# 6a%' r%*k

F%!a!ce c",a!%e* -%ke .a!k*) &he# +*e ,e,-e8* *a%!/* & "ake

-a!* & .+*%!e**e*) .+& %!*&ea' h-'%!/ 'e,*%&*) &he# *e--.!'* a!' c""erc%a- ,a,er 4 C!&rac&+a- %!&er"e'%ar%e*

The# h-' a!' *&re %!'%%'+a-*8 *a%!/* er -!/ &er" ND= a!' IN=>RANCE COM


6/38

F%!a!c%a- I!&er"e'%a&%! The ,rce** .rr$%!/ a!'

-e!'%!/ &hr+/h %!&er"e'%ar%e* -%ke

.a!k*) "+&+a- +!'*) e&c %* ca--e'F%!a!c%a- I!&er"e'%a&%! r I!'%rec&F%!a!ce

A-- &he a.e ,e* FI* e?ce,&r (!a!c%a- .rker* are (!a!c%a-%!&er"e'%ar%e*


7/38

A**e& Tra!*r"a&%! =aer*8 !ee'

="e ,+& "!e# a$a# r -!/ &%"e

a!' acce,& *"e 'e/ree r%*k Ma@r% are "*& c!cer!e' $%&h &he

*ae &he%r *a%!/* a!' ,+& a

,re"%+" ! -%+%'% Oera--) &here %* a *&r!/ ,reere!ce

r *ae a!' -%+%'%


8/38

A**e& &ra!*r"a&%! I!e*&r*8 re+%re"e!&*

="e re+%re -!/&er" ca,%&a- r

e+% O&her* re+%re +!'* !-# r a *hr&

,er%' a!' ca! .e re,a%' $%&h a h%/h

'e/ree cer&a%!


9/38

A**e& &ra!*r"er A FI %**+e* (!a!c%a- c-a%"* &ha& are

"re a&&rac&%e & h+*eh-'

*aer* &ha! &he c-a%"* '%rec&-#%**+e' .# &he cr,ra&%!*

HO>=EHOLD=FICr,ra&%!*

6.rker*


10/38

F%!a!c%a- I!&er"e'%ar%e*8

=,ec%a-!e** A**e& &ra!*r"er


11/38


12/38


13/38

Tra!*ac&%! c*&* Tra!*ac&%! c*&* are !!,r%ce c*&*

a**e**%!/ a!' carr#%!/ +& a &ra!*ac&%!

E?a",-e* are T%"e =earch c*&* Cre'%& r%*k a**e**"e!& 'c+"e!&a&%!


14/38

Re'+c%!/ &ra!*ac&%! c*&*


15/38

Tra!*ac&%! c*&* :&he e**e!&%a- ea&+re (!a!c%a- %!&er"e'%a&%!

re'+c&%! &he &ra!*ac&%! c*&* eec&%!/ %!&er a!'%!&ra&e",ra- c!*+",&%! 'ec%*%!*;6,a/e 21

: F%!a!c%a- %!&er"e'%ar%e* crea&e (!a!c%a- c""'%&%e*G.eca+*e &he# hae a c",ara&%e a'a!&a/e %!,rce**%!/ 'c+"e!&*) %! ac+%r%!/ %!r"a&%! a.+&.rr$er*8 a.%-% & re,a# 'e.&*) a!' %! "!%&r%!/%!*&r+"e!&* &ha& ca! .e ea*%-# c!er&e' %!&

/e!era-%*e' ,+rcha*%!/ ,$er; 6,a/e 222Be!*&! a!' ="%&h 617


16/38

H$ &he FI* aec& *a%!/*

a!' %!e*&"e!& =a%!/ %!crea*e* a& each /%e!

%!&ere*& ra&e

R%*k a!' "a&+r% &ra!*r"a&%!,r.a.-# e!c+ra/e .&h *a%!/a!' %!e*&"e!& a!' ra%*e &he -ee-

%!e*&"e!& %! ec!"# I!crea*e .rr$er*8 'e"a!'* r

+!'*9 %!crea*e %!e*&"e!&


17/38

=a%!/ ,r.a.-# %!crea*e*


18/38

ANY >E=TION=


19/38


20/38

I",erec& "arke&

I! a! %",erec& "arke&) FI* e?%*&!& !-# '+e & &ra!*ac&%! c*&*

.+& a-* .eca+*e &here %* !& +--%!r"a&%! A -ack %!r"a&%! era-- a!'

A*#""e&r%c %!r"a&%!


21/38

A*#""e&r%c %!r"a&%!

A*#""e&r%c %!r"a&%! 6AI e?%*&*$he! !e ,ar & a &ra!*ac&%!

ha* "re %!r"a&%! a.+& &ha&&ra!*ac&%! &ha! &he &her ,ar


22/38

A*#""e&r%c %!r"a&%!

A*#""e&r%c %!r"a&%! -ea'* &

A'er*e *e-ec&%!

Mra- Haar'


23/38

A'er*e *e-ec&%!

Occ+r* $he! &he ,&e!&%a- .rr$er*$h are "*& -%ke-# & ,r'+ce a!

+!'e*%ra.-e 6a'er*e +&c"e &he .a' cre'%& r%*k* are &he !e*"*& -%ke-# & .e *e-ec&e'

:-e"!* ,r.-e"*; reer & Rea'%!/ 2) Aker- 6170


24/38

A'er*e *e-ec&%!

Aker-8* -e"!* ,r%!c%,-e %! a"arke& $%&h +a-% +!cer&a%! &he

.e&&er +a-% %&e"* $%-- &e!' & .e$%&h'ra$! r" &he "arke& -ea%!/!-# &he :-e"!*8 r *a-e Oer

&%"e &he "arke& "a# '%*a,,ear I! 'e.& "arke&* &he :-e"!*; are

.rr$er* $%&h h%/h r%*k


25/38

Le"!


26/38

Le"! ,r.-e"

H%/h +a-% (r"* $%-- %**+e e$*ec+r%&%e*

Cre'%& "arke&* $%-- !& $rk $e-- Ma!# ,r(&a.-e ,r@ec&* $%-- !& .e

+!'er&ake!


27/38

Here (!a!c%a- %!&er"e'%ar%e*


28/38

Mra- haar'

I! &he (!a!c%a- "arke&* The ,r%!c%,a- &he -e!'er

The a/e!& &he .rr$er

The -e!'er $+-' -%ke &he .rr$er& +*e &he +!'* ! -$ r%*k

%!e*&"e!& ,r@ec&* $h%ch $+-'"%!%"%*e &he r%*k 'ea+-&


29/38

Mra- Haar'

Occ+r* a&er a -a! %* e?&e!'e')$he! &he -e!'er %* *+.@ec&e' & &he

haar' &ha& &he .rr$er "%/h&e!/a/e %! ac&%%&%e* &ha& are+!'e*%ra.-e 6%""ra- r" &he

-e!'er8* ,%!& %e$) .eca+*e&he# %!crea*e &he ,r.a.%-% 'ea+-&


30/38

Mra- haar'

Occ+r* .eca+*e &he .rr$er ha*%!ce!&%e* & %!e*& %! ,r@ec&* $%&h

h%/h r%*k %! $h%ch &he .rr$er'e* $e-- % &he ,r@ec& *+ccee'*.+& &he -e!'er .ear* "*& &he

-** % &he ,r@ec& a%-*


31/38


32/38


33/38

AKENCY CO=T=

A/e!c# c*&* are %!c+rre' .# &he,r%!c%,a- $he! h%* a/e!& 'e* !& ac& %!

&he %!&ere*&* &he ,r%!c%,a-

C*&* re-a&%!/ & &he r%*k &ha& &he$!er* a!' "a!a/er* (r"* &ha&

rece%e *aer*8 +!'* $%-- &ake ac&%!*$%&h &h*e +!'* c!&rar# & &he .e*&%!&ere*&* &he *aer*


34/38

Ba!k%!/ Re/+-a&%!

Ba!k%!/ re/+-a&%! :,r+'e!&%a-*+,er%*%!;

="e ea&+re* .a!k%!/re/+-a&%! e?,-a%!e' .# a'er*e

*e-ec&%! a!' "ra- haar'


35/38

Ba!k


36/38

C!*e+e!ce* 'e,*%&%!*+ra!ce

A'er*e *e-ec&%! Beca+*e ,e,-e $h are "*& -%ke-# & ,r'+ce &he

a'er*e +&c"e %!*+re' a/a%!*& 6e/ .a!k a%-+re

are &h*e $h "*& $a!& & &ake a'a!&a/e &he%!*+ra!ce

Mra- haar' .eca+*e %!*+ra!ce ,r%'e* %!crea*e' %!ce!&%e* r

&ak%!/ r%*k* &ha& "%/h& re*+-& %! a! %!*+ra!ce ,a#

TOOBIKTOFAIL


37/38

Re/+-a&%! & ,ree!&"ra- haar'

Char&er%!/ .a!k* .a!k -%ce!*e*

Ba!k re/+-a&%!* &ha& re*&r%c& a**e&h-'%!/* a!' .a!k ca,%&a-re+%re"e!&*

Re/+-ar .a!k e?a"%!a&%!*


38/38

>E=TION=

theories of financial intermediation

Documents