Banking: A Very Short Introduction

Very Short Introductions #503

by John Goddard, John O.S. Wilson

Banks are of central importance for economic growth, the allocation of capital, competitiveness, and financial stability. Propelled by technological advances in financial analysis and financial deregulation, the banking industry's investment played a key role in enhancing national economic growth in the early 21st century. The global financial crisis in 2007 revealed the banking world's feet of clay.
Since 2007, the turmoil in the global financial system has prompted a fundamental reappraisal of the scale, scope, governance, performance, safety and soundness of banks and other financial institutions. In this Very Short Introduction John Goddard and John Wilson explore the world of banking, describing the role of central banks in national and global economies, and analyzing the increasing supervision and regulation imposed on the banking industry. Looking to the future, the authors consider proposals for reform of the banking industry, and the prospects of a resolution of the closely-related banking and sovereign debt crises.
ABOUT THE SERIES:
The Very Short Introductions series from Oxford University Press contains hundreds of titles in almost every subject area. These pocket-sized books are the perfect way to get ahead in a new subject quickly. Our expert authors combine facts, analysis, perspective, new ideas, and enthusiasm to make interesting and challenging topics highly readable.

Genres: Economics, Nonfiction, Finance, Business, Reference

192 pages, Paperback

First published January 1, 2016

About the author

John Goddard was appointed to his present position in Bangor Business School in January 2005, having formerly been appointed Professor in Economics at University of Wales Swansea. He has worked previously at University of Wales, Bangor, Abertay University and the University of Leeds. He also has several years' practitioner experience in the UK life insurance sector.

See also: John Goddard, emeritus Professor of Regional Development Studies at Newcastle University.

Reviews

[Mehrsa · Rating 5 out of 5]

LOVE LOVE LOVE ITTTTT!
Great introduction to anyone who is new to practical enocomy like me😄
I highlighted many paragraphs and used the ideas in the book for my personal research!
Thanksss dear Goddard!

[Wang Jiao · Rating 5 out of 5]

The author is very good at explaining complex concepts in layman terms. I have to say it's the first book I read that make me comprehend what happened in the financial crisis and Basel III. It started from the very basics of what's is banking, to the evolvement of banking, to different types of banks, how does the balance sheet of a bank looks like to more complex terms such as securitization, MBS, CDO, tranche, quantitative easing, credit easing, risk weighted assets etc. The book can be finished in two days, at the end of the book, I was impressed at how the author can make me understand all these concepts in such a short book. It is time efficient and rewarding book to read.

[Daniel Wright · Rating 2 out of 5]

Chapter 1: Origins and function of banking
Chapter 2: Financial intermediation
Chapter 3: Securitized banking
Chapter 4: The central bank and the conduct of monetary policy
Chapter 5: Regulation and supervision of the banking industry
Chapter 6: Origins of the global financial crisis
Chapter 7: The global financial crisis and the Eurozone sovereign debt crisis
Chapter 8: Policy and regulatory responses to the global financial crisis

[W · Rating 3 out of 5]

Interesting for the first half or so, followed by a very dry list of events and names of institutions. It's not clear which of the two authors is responsible for what, unfortunately. A greater focus on conceptual descriptions of the processes within banking would have been more useful.

[Berat Onur Ersen · Rating 3 out of 5]

This book is neither a short nor a long introduction for banking in my opinion.
Sometimes it gets quite technical in terms but mostly it is explaining the historical events in banking sector worldwide successfully.

EU, UK and USA markets, banking regulations and crises are explained in reasonable details.
Honestly, sometimes I got overwhelmed with banking terms.

Also I think all the events and all the sentences explaining historical events could be mentioned with exact time frame like "In 24 August 2008 xxx happened".

For example; you start to read a paragraph, a very long one, in the beginning you read the year and later on towards the end of paragraph it tells about lots of historical events like "On October then this happened.." etc. and half the way of the paragraph you get disconnected with the subject so you ask yourself "About what year was I reading about really...?"

Reasons and results for banking, financial crises in world history (especially 2008 crisis) are very informative.

The abstract idea that I got from the book is banking/financial sector have been really vulnerable. There have been destructive events and as a result precautious legislations, laws have been created.
This won't stop as long as the money (whether physical or digital) dominates the world, investments, life quality, health etc. there will be new crises those will cause new rules, laws to be created.

[Matthew · Rating 4 out of 5]

Dry book, which is perhaps appropriate, about banking. It covers the history of banking in the West, the practical side of what banks actually do, the GFC and the future of banking (at least the future from the perspective of 2016). I thought the first parts were excellent, and the coverage of the GFC is excellent even if it doesn't have the narrative of Crashed. It is at its best in Ch6, having clearly explained things like CDOs, and Ch7 unfortunately devolved into a list of important issues and measures taken - it becomes a list of eye-watering figures. The last chapter is the weakest, even if useful to look at for reference at reforms taken. It moves so quickly that the book is not well written, but its matter of fact style was useful in refreshing my knowledge on these tricky topics and expanding my knowledge.

[Andrew · Rating 3 out of 5]

Decently interesting book. The first couple of chapters could actually be called an introduction to banking, but then for a few chapters, it gets so complicated and technical that there is no possible way you'll understand without knowing some of the concepts beforehand. The last few chapters are more of a history of banking, mostly about the Great Depression and the 2008 Financial Crisis.

I think you're better off just reading a few Wikipedia articles or watching some youtube videos on the topic.

[Imre · Rating 3 out of 5]

A bit too broad, it introduces a lot of technical aspects without too much context but at the same time takes its sweet time discussing the 07-09 banking fiasco. Overall a fine glossary and summary of modern banking, but even for an introduction it relies a bit heavy on an assumed basic knowledge of economics

[Francisco · Rating 3 out of 5]

[Only read specific chapters, not whole] Interesting introduction to the topic for someone who wants an overview to the wide world of banking. Also good to refresh basic notions and to have a view of the 2007 crisis.

[John-Mark · Rating 5 out of 5]

This is an accessible overview of banking which addresses key issues in financial stability, and cross-border banking in both the United States and EU.

[Kevin · Rating 4 out of 5]

Decent overview.

[Melissa Barbosa · Rating 4 out of 5]

I don't know anything about this topic, but I found this book an easy read. The author is very didactic.

[Jafar Al Jannobi · Rating 3 out of 5]

Banking textbooks teach you everything except for banking.