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Banking and the Real Economy

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  • Ed Clark

Abstract

Ed Clark discusses the importance of banking in the real economy, the weakening of trust of banks on the part of the public, and what banks must do to reclaim that trust. In particular, he cites the need for adequate capitalization and the need for cultural change within banking. There must be a shift back to a focus on the needs of customers rather than the potential gains from casino-like activity. He also discusses changes that have taken place in technology and operating practices in basic banking to provide better service to customers. He expresses a need for more informed bank regulation to avoid asset bubbles.

Suggested Citation

  • Ed Clark, 2015. "Banking and the Real Economy," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 50(1), pages 34-38, January.
    • Handle: RePEc:pal:buseco:v:50:y:2015:i:1:p:34-38
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