CHAPTER 10 Political economy in banking
10.1 Introduction
In reality, banking is much affected by politics; governments and politicians are deeply involved in banking. As in many of modern economies, central banks are created to provide banking services for all banks in the economy—as we have seen in Chapter 7, and regulatory agencies are established to discipline banks—as we will see in Chapter 12. Aside from central banking and banking regulation, governments and politicians interact with the banking sector in many other dimensions.
One crucial channel through which politics and banking interact is government ownership of banks. Across the world, non-negligible bank ownership is held by government. Defining ...
Get The Economics of Banking now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
