Table of Contents

Why do financial intermediaries exist?; the industrial approach to banking; the industrial organization approach to banking; the lender-borrower relationship; equilibrium and rationing in the credit market; the macroeconomic consequences of financial imperfections; individual bank runs and systemic risk; managing risks in the banking firm; the regulation of banks.

About the Author

Xavier Freixas is Dean of the Undergraduate School of Economics and Business Administration and Professor at the Universitat Pompeu Fabra, Barcelona. Jean-Charles Rochet is Professor of Mathematics and Economics at the University of Toulouse School of Economics.

Reviews

"The authors have provided an extremely thorough and up-to-date survey of microeconomic theories of financial intermediation. This work manages to be both rigorous and pleasant to read. Such a book was long overdue and should be required reading for anybody interested in the economics of banking and finance." --Mathias Dewatripont, Professor of Economics, ECARE, Universite Libre de Bruxelles