Skip to main content

Anniversary of Banking in Crisis

This very day last year, my book Banking in Crisis was published by Cambridge University Press. Since its publication, I have given talks about it at the Bank of England, Schroders, the Library of Mistakes in Edinburgh, University College Dublin, and Lund University. I also enjoyed launching the book back in September at Queen's Management School.

It was great seeing my book go into the top 10,000 books in Amazon and I enjoyed getting my first royalty cheque - nowhere near a 'living wage' could be obtained from authoring academic books in case you are wondering! The year ahead will bring academic reviews in scholarly journals - I'm interested to see what my academic peers will have to say about my book. It has already been reviewed favourably on a few book websites (Goodreads and the Page 99 test).

Unfortunately, the aftermath of the 2008 crisis is still with us - witness Greece, near-zero interest rates, QE, low economic growth etc.. Unstable banking has a huge economic cost. Because of this, we need to make sure that banks don't bring down the economy again. How can this be achieved? At the minute, we have financial repression of banks, but as this eases off over the next decade, what will stop bankers taking excessive risk? The lesson of UK banking history is that stable banking can only exist when bankers have 'skin in the game'.





  

Popular posts from this blog

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press . 

The Great Depression

Marginal Revolution University has a great video on the Great Depression.