Part 5: Fundamentals of Financial Institutions

Part 5 develops a framework for analyzing financial structure and institutions. This framework is useful for examining the importance of financial intermediaries as sources of finance for businesses, financial crises, and conflicts of interest in the financial industry. The readings in Part 5 treat these concerns.

1. Chapter 15:
   "For Better and For Worse: Three Lending Relationships." Mitchell Berlin, Business Review, Federal Reserve Bank of Philadelphia, November/December 1996, 3-12
2. Chapter 15 or 17:
   "Dancing with Wolves: Syndicated Loans and the Economics of Multiple Lenders." Mitchell Berlin, Business Review, Federal Reserve Bank of Philadelphia, Third Quarter 2007, 1-8.

"Bank Credit Standards.” Mitchell Berlin, Business Review, Federal Reserve Bank of Philadelphia, Second Quarter 2009, 1-10.

"How Will a Credit Crunch Affect Small Business Finance?” Gregory F. Udell, FRBSF Economic Letter No. 2009-09, Federal Reserve Bank of San Francisco, March 6, 2009.

3. Chapter 15:
   "Going Private." Vanessa Sumo, Region Focus, Federal Reserve Bank of Richmond, Winter 2008, 12-17.

"Perils of Price Deflation: An Analysis of the Great Depression." Charles T. Carlstrom and Timothy S. Fuerst, Economic Commentary, Federal Reserve Bank of Cleveland, February 15, 2001.

4. Chapter 16:
   "Lights Out." Doug Campbell, Region Focus, Federal Reserve Bank of Richmond, Summer 2005, 13-18.