The Andrew Crockett Memorial Lecture and panel discussion
The Andrew Crockett Memorial Lecture, delivered by Professor Amit Seru (Steven and Roberta Denning Professor of Finance, Stanford Graduate School of Business), on the occasion of the Bank's Annual General Meeting, Basel, 30 June 2019.
The Andrew Crockett Memorial Lecture
Abstract
Intermediation in the lending market has undergone a dramatic shift from traditional banks to shadow banks, ie non-depository institutions that fall outside the scope of traditional banking regulation. Professor Seru traces the growth of shadow banks to the increased regulatory burden faced by traditional banks and to the financial technology adopted by shadow banks. He argues that these factors explain changes in credit markets around the globe. Assessing financial stability in this new era involves understanding the business model of fintech shadow banks and traditional banks, the industrial organization of the credit market and the equilibrium interaction of intermediaries. Professor Seru concludes by illustrating and emphasizing that a regulatory policy analysis requires the impact of the policy on banks and shadow banks to be analyzed side by side.