Structural Banking Reforms: an illusionary solution

It is always dangerous to go against conventional thinking.

But I must say that the focus on bank “structural reforms” puzzles me somewhat.

So, I will try to tell you what is my own interpretation of the “structural” elements of the banking crisis of 2007-2008. This interpretation will, of course, influence my answer to the question: “what to do”?

I will focus my remarks on three themes: 

• Structural diversity, understood as different banking business models, is the result of history; 
• Structural aspects of the banking sector were not the cause of the crisis;
• How to cope with the structural issue?

Download