financial systems The Roles of Banks in Financial Systems.doc

financial systems The Roles of Banks in Financial Systems 导读：就爱阅读网友为您分享以下“The Roles of Banks in Financial Systems”的资讯，希望对您有所帮助，感谢您对92的支持! The Roles of Banks in Financial Systems* Franklin Allen University of Pennsylvania and Elena Carletti University of Frankfurt and CFS March 21, 2008 Abstract Banks perform various roles in the economy. First, they ameliorate the information problems between investors and borrowers by monitoring the latter and ensuring a proper use of the depositors? funds. Second, they provide intertemporal smoothing of risk that cannot be diversified at a given point in time as well as insurance to depositors against unexpected consumption shocks. Because of the maturity mismatch between their assets and liabilities, however, banks are subject to the possibility of runs and systemic risk. Third, banks contribute to the growth of the economy. Fourth, they perform an important role in corporate governance. The relative imp