Tracking Relevant Measures of Credit Creation in a Market-Based Financial System

Banking and Finance Review, Vol. 3, No. 2, pp. 149-157, 2011

Posted: 22 Dec 2011

See all articles by Carolin D. Schellhorn

Carolin D. Schellhorn

Saint Joseph's University - Department of Finance

Date Written: December 1, 2011

Abstract

The growth of the shadow banking system has allowed credit risk to grow outside the purview of traditional bank regulation. Despite lacking relevant information and control over shadow banks, the magnitude of the recent financial crisis required the Federal Reserve to backstop their activities. Going forward, the Dodd-Frank Act offers opportunities for improved information collection and supervision of shadow banks and traditional banks. In addition to reforming and extending traditional bank regulations, relevant measures of credit creation and credit risk may be needed so that credit quantity targets can be formulated that vary with changes in economic conditions.

Keywords: Banking, Financial Intermediation, Money, Credit, Regulation

JEL Classification: G20, G21, G28

Suggested Citation

Schellhorn, Carolin D., Tracking Relevant Measures of Credit Creation in a Market-Based Financial System (December 1, 2011). Banking and Finance Review, Vol. 3, No. 2, pp. 149-157, 2011, Available at SSRN: https://ssrn.com/abstract=1975474

Carolin D. Schellhorn (Contact Author)

Saint Joseph's University - Department of Finance ( email )

Philadelphia, PA 19131
United States
610-660-1657 (Phone)
610-660-1986 (Fax)

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