Traditionally, financial systems have been bank-based or market-based. The efficiency properties of these systems are compared in various dimensions. These include risk sharing, information provision, funding new industries, corporate governance, and law, finance and politics. Both systems have...

This paper analyzes the Asian crisis in the context of past and present financial crises to provide a model of asset price bubbles and ensuing crisis in developing and other economies. It is argued that financial structure matters for economic growth but is not that important for preventing...

Market discipline for financial institutions can be imposed not only from the liability side, as has often been stressed in the literature on the use of subordinated debt, but also from the asset side. This will be particularly true if good lending opportunities are in short supply, so that...