Banking Distortions In The Financial Structures Of Post-War Economies (The Experience Of Jamaica, Korea, Trinidad And Tobago And The U.S.A)

📄 Project Abstract

BANKING DISTORTIONS IN THE FINANCIAL STRUCTURES OF POST-WAR ECONOMIES (The Experience of Jamaica, Korea, Trinidad and Tobago and the U.S.A.) This study assesses the evolution of the banking system in the financial structures of selected economies in the post-war years 1960 through 1980. In an examination of Jamaica, Korea, Trinidad and Tobago and the United States of America, the study identifies and speaks to the emergence of a largely financial phenomenon which it calls financial asphyxiation. This phenomenon is deemed to exist when, contrary to orthodox theory and historical experience,the banking subsector (central and commercial banks) systematically at the margin, commands a larger share of the financial system, despite markedly less efficient incremental operational performance than non-banks. Thus, in time, the banking system succeeds in stifling or 'asphyxiating' the healthy evolution of the non-banking system, introducing into the financial system major distortions, that are ...