Get rid of banks and build up a modern financial world

Lenz, Rainer (2011): Get rid of banks and build up a modern financial world.

Abstract

The financial crisis has revealed fatal institutional and structural deficits at the finance market. Politics has reacted to the financial crisis with a sea of legal bills and regulations. But all regulating efforts are merely system-imminent reparation measures and do not solve the core problems. For this, a fundamental financial reform is needed. This article analyzes the finance system’s shortcomings, documents the reform approaches from the past three years, and designs a base structure for modern finance architecture without banks.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial crisis; Banking sector reforms; Financial sector reforms; virtual markets, peer-to-peer lending, P2P lending, online lending, finanical market regulation
• Subjects: G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General; D - Microeconomics > D2 - Production and Organizations > D20 - General; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; A - General Economics and Teaching > A1 - General Economics > A10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies; G - Financial Economics > G0 - General > G01 - Financial Crises; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General; G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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