Traditionally, financial systems have been bank-based or market-based. The efficiency properties of these systems are …, and law, finance and politics. Both systems have advantages and disadvantages. With regard to stability, both bank …

framework in which fractional reserve banks emerge in equilibrium, where bank assets are funded with liabilities made demandable … in government money, where the terms of bank deposit contracts are affected by the liquidity insurance available in … financial markets, where banks are subject to runs, and where a central bank has a meaningful role to play, both in terms of …

Even though the sector of Non-bank financial intermediaries (NBFI) or shadow banks represent a large part of the …