Part 6: The Financial Institutions Industry

The framework laid in Part 5 is used in Part 6 to examine such topics as the importance of financial intermediaries as sources of finance for businesses, bank management, financial innovation, banking industry structure, bank regulatory issues, and nonbank financial institutions. Several of these concerns are treated in the readings for Part 6. Because this area changes rapidly, these readings play an important role in keeping course content up to date.

1. Chapter 17:
   "The Internet's Place in the Banking Industry." Robert DeYoung, Federal Reserve Bank of Chicago Fed Letter, No. 163, March 2001, pp. 1-4.
2. Chapter 17:
   "Subprime Mortgage Lending and the Capital Markets." Elizabeth Laderman, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2001-38, December 28, 2001, pp. 1-3.
3. Chapter 17:
   "What is Operational Risk?" Jose A. Lopez, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2002-02, January 25, 2002, pp. 1-2.
4. Chapters 17 and 21:
   "How Financial Firms Manage Risk." Jose A. Lopez, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2003-03, February 14, 2003, pp. 1-3.
5. Chapter 18:
   "Financial Modernization and Banking Theories." Simon Kwan, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2001-37, December 21, 2001, pp. 1-3.
6. Chapter 18:
   "Securitization." O. Emre Ergungor, Federal Reserve Bank of Cleveland Economic Commentary, August 15, 2003, pp. 1-4.
7. Chapters 18 and 20:
   "Banking Consolidation." Simon Kwan, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2004-15, June 18, 2004, pp. 1-3.
8. Chapter 18:
   "Whither the Community Bank? Relationship Finance in the Information Age." Robert DeYoung, William C. Hunter, and Gregory F. Udell, Federal Reserve Bank of Chicago Fed Letter, No. 178, June 2002, pp. 1-4.
9. Chapter 18:
   "Patterns in the Foreign Ownership of U.S. Banking Assets." Jose A. Lopez, Federal Reserve Bank of San Francisco Economic Letter, No. 2000-35, November 24, 2000, pp. 1-3.
10. Chapter 18:
    "Has Foreign Bank Entry Led to Sounder Banks in Latin America?" Jennifer S. Crystal, B. Gerard Dages, and Linda S. Goldberg, Federal Reserve Bank of New York Current Issues in Economics and Finance, 8(1), January 2002, pp. 1-6.
11. Chapter 18:
    "Competition and Opportunity: How International Forces Spurred Innovation in U.S. Banking." Richard N. Cooper and Jane Little, Federal Reserve Bank of Boston Regional Review, 11(3), Q3 2001, pp. 16-23.
12. Chapter 19:
    "Credit Unions Make Friends - But Not with Bankers." William R. Emmons and Frank A. Schmid, Federal Reserve Bank of St. Louis The Regional Economist, October 2003, pp. 4-9.
13. Chapter 20:
    "Deposit Insurance Reform: Is It Déjà Vu All Over Again?" Mark D. Vaughan and David C. Wheelock, Federal Reserve Bank of St. Louis The Regional Economist, October 2002, pp. 4-9.
14. Chapter 20:
    "A Third Pillar of Bank Supervision." William R. Emmons, R. Alton Gilbert, and Mark D. Vaughan, Federal Reserve Bank of St. Louis The Regional Economist, October 2001, pp. 4-9.
15. Chapter 20:
    "The Score on Credit Scoring in Small Business Lending," Federal Reserve Bank of Atlanta EconSouth, Third Quarter 1999, pp. 8-12.
16. Chapter 21:
    "Mutual Funds, Fee Transparency, and Competition." John B. Carlson, Eduard A. Pelz, and Erkin Y. Sahinoz, Federal Reserve Bank of Cleveland Economic Commentary, March 1, 2004, pp. 1-3.
17. Chapter 22:
    "Social Security Restructuring: Tough Decisions Ahead." Jason L. Saving and Alan D. Viard, Federal Reserve Bank of Dallas Southwest Economy, September/October 2003, pp. 13-17.
18. Chapter 22:
    "The Present and Future of Pension Insurance." Simon Kwan, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2003-25, August 29, 2003, pp. 1-3.