Market- vs. Bank-Based Financial Systems : Do Investor Rights Really Matter?, Working Paper 01-01R
Why are common-law countries market-dominated and civil-law countries bank-dominated? This paper provides an explanation tied to legal traditions. Civil-law courts have been less effective in resolving conflicts than common-law courts because civil-law judges traditionally refrain from interpreting the codes and creating new rules. In a civil-law environment, where potential conflicts between borrowers and individual lenders inhibit the development of markets because the courts are unable to penalize defrauding borrowers, I show that banks can induce borrowers to honor their obligations by threatening to withhold services that only banks can provide. In other words, banks emerge as the primary contract enforcers in economies where courts are imperfect.
AUTHOR(S): Ergungor, Ozgur Emre
DATE: March 2002
PART OF: Working Paper (Federal Reserve Bank of Cleveland)
fraser.stlouisfed.org/.../market--vs-bank-based-financial-systems-628340
Market- vs. Bank-Based Financial Systems : Do Investor Rights Really Matter?, Working Paper 01-01R
Why are common-law countries market-dominated and civil-law countries bank-dominated? This paper provides an explanation tied to legal traditions. Civil-law courts have been less effective in resolving conflicts than common-law courts because civil-law judges traditionally refrain from interpreting the codes and creating new rules. In a civil-law environment, where potential conflicts between borrowers and individual lenders inhibit the development of markets because the courts are unable to penalize defrauding borrowers, I show that banks can induce borrowers to honor their obligations by threatening to withhold services that only banks can provide. In other words, banks emerge as the primary contract enforcers in economies where courts are imperfect.
AUTHOR(S): Ergungor, Ozgur Emre
DATE: March 2002
PART OF: Working Paper (Federal Reserve Bank of Cleveland)
fraser.stlouisfed.org/.../market--vs-bank-based-financial-systems-628340
Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Second Quarter 2020, BEA 20-48
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Second Quarter 2020, BEA 20-48 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: September 30, 2020
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Second Quarter 2020, BEA 20-48
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Second Quarter 2020, BEA 20-48 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: September 30, 2020
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2021, BEA 22-13
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2021, BEA 22-13 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: March 30, 2022
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2021, BEA 22-13
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2021, BEA 22-13 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: March 30, 2022
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2020, BEA 21-11
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2020, BEA 21-11 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: March 25, 2021
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2020, BEA 21-11
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits, and GDP by Industry, Fourth Quarter and Year 2020, BEA 21-11 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: March 25, 2021
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Third Quarter 2020, BEA 20-67
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Third Quarter 2020, BEA 20-67 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: December 22, 2020
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Third Quarter 2020, BEA 20-67
Bureau of Economic Analysis (BEA) News Releases, Gross Domestic Product (Third Estimate), Corporate Profits (Revised), and GDP by Industry, Third Quarter 2020, BEA 20-67 by United States. Bureau of Economic Analysis
AUTHOR(S): United States. Bureau of Economic Analysis
DATE: December 22, 2020
PART OF: Bureau of Economic Analysis (BEA) News Releases
fraser.stlouisfed.org/.../
