TY  - UNPD
A1  - Fecht, Falko
A1  - Inderst, Roman
A1  - Pfeil, Sebastian
T1  - A theory of the boundaries of banks with implications for financial integration and regulation
T2  - Working paper series / Institute for Monetary and Financial Stability ; 87
N2  - We offer a theory of the "boundary of the …rm" that is tailored to banking, as it builds on a single ine¢ ciency arising from risk-shifting and as it takes into account both interbank lending as an alternative to integration and the role of possibly insured deposit funding. Amongst others, it explains both why deeper economic integration should cause also greater financial integration through both bank mergers and interbank lending, albeit this typically remains ine¢ ciently incomplete, and why economic disintegration (or "desychronization"), as currently witnessed in the European Union, should cause less interbank exposure. It also suggests that recent policy measures such as the preferential treatment of retail deposits, the extension of deposit insurance, or penalties on "connectedness" could all lead to substantial welfare losses.
T3  - Working paper series / Institute for Monetary and Financial Stability - 87 
Y1  - 2015
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37479
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-374792
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_87_Inderst.pdf
IS  - December 2014
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -