Author: Richard S. Grossman
Commercial banks are among the oldest and most familiar financial institutions. When they work well, we hardly notice; when they do not, we rail against them. What are the historical forces that have shaped the modern banking system? In Unsettled Account, Richard Grossman takes the first truly comparative look at the development of commercial banking systems over the past two centuries in Western Europe, the US, Canada, Japan, and Australia. Grossman focuses on four major elements that have contributed to banking evolution — crises, bailouts, mergers, and regulations, says a review on the Princeton University Press website.
He explores where banking crises come from and why certain banking systems are more resistant to crises than others, how governments and financial systems respond to crises, why merger movements suddenly take off, and what motivates governments to regulate banks.
Grossman reveals that many of the same components underlying the history of banking evolution are at work today.