Post-financial Crisis Times: Only a Short Phase of Re-intermediation and Re-direction to Boring Banking Business Models? Regulatory Burden, Fintech Competition and Concentration Processes

Artikel

The analysis highlights the aspects of diversified market structures and of local, low-distance banking as advantageous for financial stability. Heterogeneity protects from uniform market behaviour. Local banking can better overcome the problem of asymmetric information, particular in SME lending. Moreover, connections to other socio-political aspects must be factored into the assessment: financial inclusion, presence in rural areas, and depletion of regional disparities. The vast regulation and Europeanisation of supervision, however, - so far neglecting differences in risk profiles and bank sizes - have imposed a higher minimum business size, which led to an extensive merger trend, especially negatively affecting smaller and regionally focussed credit institutions. So it seems that the process of re-intermediation and re-directing banking business back to deposit-based lending, taken place in the aftermath of the financial crisis, was of short length only. Regarding recent developments, we argue that FinTech applications are expected to complement, not to replace, existing banking and financial services. However, we warn against existing regulatory loopholes and regulatory arbitrage for FinTech applications and BigTech approaches.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Vierteljahrshefte zur Wirtschaftsforschung ; ISSN: 1861-1559 ; Volume: 87 ; Year: 2018 ; Issue: 4 ; Pages: 87-117 ; Berlin: Duncker & Humblot

Classification and Topics

• Classification: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Money Supply; Credit; Money Multipliers ; Information and Market Efficiency; Event Studies; Insider Trading ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Financial intermediation ; business models of banks ; regional development ; small- and medium-sized enterprises ; financial regulation ; fintechs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schackmann-Fallis, Karl-Peter ; Weiß, Mirko
• Event: Veröffentlichung
• (who): Duncker & Humblot
• (where): Berlin
• (when): 2018

Further information

• DOI: doi:10.3790/vjh.87.4.87
• Handle: http://hdl.handle.net/10419/213116
• Last update: 10.03.2025, 11:44 AM CET