by Sebastian Schich | Sep 14, 2023 | bank levy, Ending too-big-to-fail, financial safety net, financial sector guarantees, financial support for SMEs, implicit guarantees, TBTF, too-big-to-fail, why banks are special
Banking sector extraordinary privileges Banks benefit from an extraordinary privilege: in times of impending systemic financial crises, governments act as guarantors of last resort for banks’ financial obligations. This privilege is not paid, at least not...
by Sebastian Schich | Jun 21, 2023 | bank "specialness", financial safety net, financial sector guarantee, Fintech, why are banks special, why banks are special
Fintech developments challenge the business model of incumbent financial market players but are they making banks less “special”? The short answer is no. Banks manage two sets of cash flows – deposits and loans – and provide two key services – liquidity provision and...
