Bank's Customer Service Network From The Internet example essay topic

1. Introduction 1 2. Executive Summary 13. Trends in Retail Banking 24. About the Internet 25.

Virtual Banking and Applications 35.01. Interactive Application 4 5.02. Smart Cards 46. Online Banking System Security 5 6.01. Cryptography 6 6.02. Firewalls and Routers 7 6.03.

Trusted Operating Systems 7 7. Supervision and Regulations of Network Banking 88. Conclusion 129. References 14 Introduction The Internet's explosive growth has initiated considerable activity in the financial services industry. For this industry, the Internet and, in particular, the World Wide Web, serve as a new vehicle for transmitting financial information, comparable to the invention of the telegraph 150 years ago and its use for transmitting financial information.

Although computer networks only transport financial information, many predict radical changes including the 'dissolution of geographic markets into virtual financial systems' and the 'loss of national independence. ' These predictions are simplistic and are not based on analyzing this issue. However, the facts are (a) financial services are information commodities and (b) public computer networks offer a fast, cheap way to trade information. Public computer networks can radically improve efficiency and competition in the financial services sector. Increased efficiency and competition rely on three characteristics of these networks: . Marginal costs of selling financial information over computer networks are small - in fact, typically negligible - compared with more traditional information channels; .

Public computer networks are essentially border less, giving rise to the cross-border provision of financial services; . Setup costs to establish a financial services business on a public computer network are small, which increases the contest ability of financial services markets Executive Summary The Internet is emerging as an efficient delivery channel for financial services. With Internet banking, customers do not need to have special bank-issued software. Banks maintain their identity and can differentiate themselves by customizing the services and information they provide over the Internet. Trends in Retail Banking What does better customer mean? Increasingly, customers are demanding more convenient ways to do their banking.

An Ernst and Young study (Technology in Banking Report) concluded 'nothing changes in the banking world if customers cannot get financial services when and where they wish... this means anywhere, at any time. ' Statistics show that ATM's, telephone banking, and home banking account for over fifty percent of all banking transactions today, and total non-branch activity is growing at fifteen percent a year. In one survey (Web-Tech, Inc., May 17, 1995), eighty-two percent of 18- to 34-year olds polled preferred banks with 24-hour service. Customers are also demanding a more sophisticated mix of products tailored specifically to their financial needs, and non-bank competitors are better fulfilling these needs.

Banks today hold only 20% of household financial assets, versus 34% twenty years ago; they have 30% of business deposits, versus 42% only seven years ago. Nonbank credit card providers have gained inroads against banks, holding a 25% market share versus 5% in 1986 (Web Tech, Inc., May 17, 1995). Internet banking offers an attractive solution to this redesigned products and services. Customers have 24-hour graphical-interface access to their accounts and appreciate that their bank is doing something to make banking easier for them.

About the Internet The Internet has exploded in the last two years thanks to the invention of the so-called 'browser. ' A browser is a point-and-click software program that allows 'surfers' to navigate around the Internet without knowing any UNIX commands. The first browser was developed by the National Center for Supercomputing Applications, a government agency. With a browser and access to the Internet, you can order a pizza, listen to and purchase a CD, stroll through the Louvre, or view satellite photographs of Scotland. Although it may get congested from time to time, the Internet itself is extremely reliable. There is not actually any one network that is the Internet; it is made up of thousands of networks that connect to each other through common routes, and they all agree to carry each other's traffic.

There is a lot of money flowing up from local access providers to these national players, guaranteeing that the infrastructure will continue to expand to meet demand. Because so many resources are shared, the Internet is also very efficient. It costs a lot less to connect a business to the Internet than to lease telephone lines that customers dial into with their modems. Most likely Internet users will continue to be charged for the size of the 'pipe' connecting them to the Internet.

The number of commercial entities with an Internet presence doubled in the first three months of 1995. Modems will keep getting faster, allowing more information, better graphics, and full-motion video to be downloaded more easily. However, in five years most households will probably buy their Internet access from their cable company, who will provide them with a 10 megabit-per-second connection through their cable wire. A 10-MB connection would download in one second a file that takes a 28.8 K modem five and a half minutes to download (Web Tech, Inc., May 17 1995).

Virtual Banking and Applications Picture a bank without any branches. No tellers. No rows of desks. No racks of brochures, no automated teller machines outside.

Picture, in fact, a virtual bank, one that for the customer exists only in his or her office or home, as images on a computer screen. US financial institutions are moving towards 'virtual banking. ' This strategy is about making bank products and services available to customers any time and any place they want them. As virtual banking becomes more popular, it is very likely that more customer service will be seen while the number of traditional teller-staffed branches will decline. Bank customers will move away from traditional banking and will become more dependent on electronic transactions using ATMs or PCs (Britt, Savings&Community Banker, February 1995, p. 9).

Thanks to the revolution, financial institutions are using software programs, online services, and even the Internet to allow customers to check balances, pay bills, and transfer funds among accounts, Bankers promise that, in the near future, we will also be able to more easily buy certificates of deposit, mutual funds, and other investments, and even apply for loans electronically. For most people, today's best option may be plug into their bank through one of three leading home-budgeting software programs: Intuits Quicken, Microsoft Money, and managing Your Money. By charging $5 to $20 a month for such services, banks are sure to cash in on the high-tech superhighway. For customers, the job is made easy. All that is required is a personal computer, software and a modem. On-screen instructions, laden with colorful graphics and pictures, explain how to select and work on various tasks.

The system automatically calculates and updates account balances and keeps records of bills. A handful of banks have already set up home pages on the Internet to provide information to their existing and potential customers about upcoming services. They started their transactions. Internet banking differs from the traditional PC banking model in several ways.

In most home banking ventures, the bank sends an application software program to the customer which runs on the customer's PC. The customer then dials into the bank with their modem, downloads data, and runs the programs that are resident on their computer, perhaps sending back a batch of requests such as transfers between accounts. It demands more and more space and speed from the customer's computer. With Internet banking, on the other hand, there are potential customers who already have all the software they need to do their banking, since all they need is a browser. The actual banking software resides on the bank's server in the form of their home page. This software can be updated at any moment with new information, such as new prices or products, without having to send anything to the customer; it can also continue to expand and become more sophisticated without becoming cumbersome for the customer to operate.

Banking with a browser, on the other hand, involves a continuous, interactive session, initiated by a local telephone call to a local access provider or online service. A home page in the Internet is not only a customized product tailored specifically for that bank's customers, but an advertisement for the bank as well. Early entrants in the Internet banking market will benefit on multiple fronts. These banks will appeal to a vast new potential market that represents an attractive demographic segment: educated, professional, affluent. These new customers will save banks money because they will visit branches less frequently and will switch from paper to electronic transactions.

More importantly, by developing internal expertise today, banks can position themselves to react quickly to competitive moves and consumer trends as the financial services industry evolves. These banks will see the benefits of early players and they will enjoy the public relations boost that comes from being a market leader (Web Tech, Inc., May 17, 1995). Interactive Applications In Columbus, Ohio, Huntington Bancshares Inc. has put its stamp on the virtual bank concept with Huntington's Access, an automated branch office that's always open. The Access branch houses both traditional and advanced-function automated teller machines that use imaging technology to display deposited checks for verification and to cash a check to the nearest dollar. Also on site is the Personal Touch screen, interactive video kiosks where customers can conduct a variety of transactions. At the touch screen, customers are able to talk face to image with a customer service representative.

Banks find themselves facing a window of customer opportunity. 'In a lot of their other business transactions, the retail customer in general is learning to self-serve. And, of much more importance, he or she is learning to self-sell,' says George Bollenbacher, manager of strategy and business development for worldwide financial services at Unisys Corp. In short, they are ready for self-banking. Some progressive banks already have a presence on the World Wide Web. Wells Fargo Bank of San Francisco gives customers access to current account balance information and transaction histories at its Web site Using browsers from Netscape Communications Corp. First Union Bank, in alliance with Open Market Inc. plans by year's end to offer full Web transaction services to its 10 million customers (Kay, A., Communications Week, August 14, l 995, p. 36-40). Smart Cards Employees at Bank of America, Chemical, Wells Fargo, and other large U.S. banks use them to buy lunch and snacks.

Smart cards-plastic cards with computer chips-are starting to be used for prepayment, debit, and credit purchases all over the world. In the U.S., smart cards can be only used at a contained group of machines, or for one purpose. 'They are part of the broader shift to electronic delivery, to making ATMs more functional, to using PCs and the Internet to do home banking, to going to POS terminals to get cash back, to getting electronic benefits transfer off a card. ' says Edgar Brown, senior vice- president of alternative delivery products at First Union, Charlotte, N.C. One of the advantages of using chips on cards with or instead of magnetic stripes is better security. Microprocessor chips are very difficult to alter or forge. Chips can carry more information than magnetic stripes can. A microprocessor chip can store up eight kilobytes of data.

Smart cards make possible cheaper and faster payments. Money can be deducted from a chip without on-line authorization. This makes for a two-second transaction versus up-to-two-minutes one, and telecommunications costs are saved (Lunt, P., ABA Banking Journal, September 1995, p. 46). Online Banking System Security In Internet banking as with traditional banking methods, security is a primary concern. At First Citizens National Bank we have taken every precaution necessary to be sure your information is transmitted safely and securely.

The latest methods in Internet banking system security are used to increase and monitor the integrity and security of the system. The security of the First Citizens National Bank Internet banking application is addressed at three levels. The first concern is the security of customer information as it is sent from the customer's PC to the Web server. The second area concerns the security of the environment in which the Internet banking server and customer information database resides. Finally, security measures are in place to prevent unauthorized users from attempting to log into the online banking section of the Web site. Data security between the customer browser and our Web server is handled through a security protocol called Secure Sockets Layer (SSL).

SSL provides data encryption, server authentication, and message integrity for a Internet connection. In addition, SSL provides a security 'handshake' that is used to initiate the connection. This handshake results in the client and server agreeing on the level of security they will use and fulfills any authentication requirements for the connection. Currently First Citizens National Bank's online banking application supports data encryption at the highest level (128 bit). In order to get this level of encryption, you will need a browser that supports it. Both versions 3 and 4 of the most popular browsers support 40-bit encryption as a default, and have complete versions as well as patches that will support the stronger 128-bit encryption.

Check with your browser manufacturer's website for more information. Requests for online banking information are passed on from the Web server to the Internet banking server. The Internet banking application is designed using a three-tiered architecture. The three-tiered architecture provides a double firewall, completely isolating the Web server from the customer information SQL database. The World Wide Web interface receives SSL input and sends requests through a firewall over a dedicated private network to the Internet banking server.

The World Wide Web interface is the only process capable of communicating through the firewall to the Internet banking server. Therefore, only authenticated requests communicate with the Internet banking server. The customer information database is housed on a Microsoft SQL Server, which implements Microsoft NT security in addition to the firewall technology. The customer database is stored on a RAID-5 drive array, which provides uninterruptible data access, even in the event of a hard drive failure. Just as the World Wide Web interface is the only process capable of communicating with the Internet banking server, the Internet banking server is the only process able to send requests to the SQL database. Thus, the outside world is removed from the customer database by two dedicated private networks.

A security analyzer constantly monitors login attempts and recognizes failures that could indicate a possible unauthorized attempt to log into an account. When such trends are observed, steps will be taken automatically to prevent that account from being used. Security concerns have been addressed from every angle within the architecture of the Internet banking application. Implementation of the SSL security protocol on the Web server and customer browser ensures authenticated data has been received from the customer.

The three-tiered approach of the Internet banking application creates a double firewall which performs information requests over dedicated networks designed to handle specific functions. Placing all business logic and event logging within the Internet banking server creates a controlled environment, which allows quick incorporation of Internet security technologies as they evolve. Finally, the security analyzer monitors login attempts in order to prevent unauthorized logins. Cryptography Several layers of technology are being used to ensure the confidentiality of its transactions across the Internet. Security begins with your browser.

Microsoft Internet Explorer and Netscape's SSL protocol (Secure Sockets Layer) is used to provide privacy for the data flowing between the browser and the bank server. SSL is an open protocol for securing data communication across computer networks, and it provides a secure channel for data transmission through its encryption capabilities. It allows for the transfer of digitally signed certificates for authentication procedures, and provides message integrity, ensuring that the data can't be altered en route. When a customer account is created, the bank assigns a password that is sent to the customer along with an account verification letter. In addition to password protection, many of service provider companies also provide server authentication using the latest in public key cryptography. Public / private key pairs are used specifically for authentication.

The public key can be distributed, using a certificate that verifies the identity of the owner. The private key is kept secret. A message encrypted with a public key can only be read after decryption with the private key. To start a transaction, the customer uses his or her browser to send a secure message via SSL to the bank. The bank responds by sending a certificate that contains the bank's public key. The browser authenticates the certificate, then generates a session key which is used to encrypt data traveling between the customer's browser and the bank server.

The session key is encrypted using the bank's public key, and sent back to the bank. The bank decrypts this message using its private key, and then uses the session key for the remainder of the communication. By exchanging messages using the public / private key pair, the customer can be assured they are actually communicating with the bank, and not a third party trying to intercept the transaction. When a session is encrypted, the key icon at the lower left corner of the browser's screen becomes solid, and a blue line appears at the top of the screen.

If the key icon appears broken, encryption is not in use and the current session is not secure. Firewalls and Routers The bank is protected by a system of filtering routers and firewalls, which form a barrier between the outside Internet and the internal bank network. The filtering router verifies the source and destination of each network packet, and determines whether or not to let the packet through. Access is denied if the packet is not directed at a specific, available service. The firewall is used to shield the bank's customer service network from the Internet. All incoming IP traffic is actually addressed to the firewall, which is designed to allow only e-mail into the customer service environment.

Traffic through the firewall is subjected to a special proxy process that operates in much the same way as a filtering router, verifying the source and destination of each information packet. The proxy then changes the IP address of the packet to deliver it to the appropriate site within the customer service network. In this way, all inside addresses are protected from outside access, and the structure of the bank's internal networks is invisible to outside observers. Trusted Operating System While there are important security issues associated with transit across the Internet, the greatest risk to your financial information occurs within the bank itself.

Service providers or bank addresses this issue using Security First Technologies Virtual Vault platform. An important part of this architecture is the Trusted Operating System, the dominant security platform in government computing. Service provider's use of this trusted operating system, called CM+, represents the first commercial implementation of this highly successful platform, used for years by the Department of Defense and other high-security government agencies. The trusted operating system acts as a 'virtual vault,' protecting customer information and funds inside the bank. It uses multilevel technology and contains privilege and authorization mechanisms to control access to functions and commands.

It also contains an audit mechanism which record logins and logouts, use of privilege, access violations and unsuccessful network connections. This allows quick identification of any suspicious activity. Supervision and Regulation of Network Banks This section considers whether network banks provide additional reasons for public intervention and whether they require different treatments. In this section, we identified two reasons for public intervention: bank runs and the asymmetric information between banks and their depositors. Here, we identify three questions with regard to the supervision and regulation of network banks. Could the provision of financial services via public computer networks increase the need for banking regulation and supervision?

An increase in public intervention would be necessary if network banks were more vulnerable to bank failures, bank runs, and systemic risks. Consider the potential for bank runs first. Network bank are more vulnerable to bank runs for the following reasons: . Information and rumors spread quickly across the Internet.

The rapid spread of information is most relevant for so-called fundamental or information-based bank runs. In a fundamental bank run depositors realize that the value of assets in the bank is low and that withdrawing is the dominant strategy (Vives, 1991). The rapid spread of rumors could also increase the potential for panic bank runs, which are unrelated to any fundamentals. This issue reminds us of the many virus alerts that sweep through the Internet. For example, postings on the Internet about a plain electronic mail message that, when opened, erases all files on the reader's hard disk induces panic; in reality it is not possible to get infected by just a plain e-mail message (although attachments can carry all sorts of troubles)... Public computer networks provide fast access of depositors to their accounts.

With the push of a button, agents can transfer money from one account to another and from one bank to another bank. As a consequence, during a bank run a network bank has less time to react appropriately and to take necessary measures, such as liquidating assets, to prevent the bank failure... Fast access to a bank and the rapid spread of rumors and information also make network banks more vulnerable to the contagious nature of bank runs. Information about the failure of one bank can trigger runs on other solvent network banks. Again, network banking could increase the speed of such events, thereby reducing the ability of banks and governmental officials to react in a timely manner... Security concerns are the main reason for banks' cautious approach toward banking on the Internet.

At the initial stage, before network banks mature, breach of security could be a major source for instability and bank runs. Depositors could react very sensitive to any news or rumors that affect their wealth. The second reason for market failures is asymmetric information between bank and a large number of free-riding depositors and the incentives of bank management and equity holders to gamble for resurrection when the bank is in trouble... To be able to gamble for resurrection, bank managers and equity holders try to avoid outside interference. Manipulating performance measures and gains trading is one way to do this (Dewatripont and Tirole, 1993). For example, the bank in trouble could sell undervalued assets even though it would be profitable to keep them.

Network banks have an additional means to avoid outside interference: they can move or credibly threaten to move their business to a location where public authorities are less likely to intervene. In fact, the sheer threat of dislocation could soften governmental authorities... The high level of anonymity between bank customer and network bank could increase the difficulties of depositors to monitor banks. Moreover, network banking could increase dispersion of depositors, which could increase further the difficulties of depositors to monitor and exercise control when the bank is in trouble.

In summary, network banks are more vulnerable to bank runs because news and rumors spread quickly over public computer networks. The main source of instability could be security problems. Network banks have also more options to avoid outside interference in order to gamble for resurrection because they can credibly threaten to move their business. As a consequence, network banks should be regulated and supervised at least to the same degree as ordinary banks. In the initial stage, before network banking matures, the potential for bank runs suggests that governmental authorities should monitor network banks as closely as possible and provides information to the public. This would be also to the advantage of network banks because it would give the public more confidence to use these banks, which in turn would help network banking to take off.

A final note is required here. Although network banks are more vulnerable to bank runs and the gamble for resurrection problem, network banking provides no new, previously unknown type of market failure. Network banking does not fundamentally alter the characteristics of banking; network banks provide the same financial services and are in all respects ordinary firms with management, equity holders and debt holders. How does the international dimension of network banking potentially affect supervision and regulation? Existing regulations for Retail Banking, deposit insurance, and lender-of-last-resort facilities are designed to deal with domestic or branches of foreign retail banks with domestic depositors. In first section of this paper we concluded that a customer's marginal costs of buying financial services are independent of the network bank's physical location.

Thus, in the absence of legal restrictions, network banks could attract a large number of foreign customers, giving rise to the following issues for supervision and regulation: . For many types of cross-border financial services, it is unclear which nations' regulations would apply, leaving unresolved and nebulous legal issues regarding network banking... Regulatory regimes of different countries compete with each other. Restrictive regulations hurt local financial institutions and they lose business to financial intermediaries elsewhere. Thus, 'soft' countries can attract foreign customers.

The retail sector has so far been less affected by these developments because the costs of offshore banking for small depositors have been too high. Network banking could reduce these costs enough to make offshore banking profitable for small depositors and increase the pressure to soften regulations in the retail sector... Regulatory regimes not only compete for customers but also for financial institutions. Thus, a 'soft' country could attract financial intermediaries to settle down in its jurisdiction.

The sheer threat of loosing banks could prevent implementation and rigorous enforcement of regulations in the retail sector. Who will regulate and supervise network banks operating in various countries? According to Baltensperger and Dermine (1990, p. 18) international banking raises two specific issues: The first concerns supervision and regulation. Does domestic regulation apply to other banks operating in the country ('national treatment principle') or does it apply to the foreign component of domestic banks ('home country principle')? The second issue concerns the extent of responsibility of the domestic lender of the last resort and of the domestic insurance system. Do they cover branches or subsidiaries of domestic banks operating abroad?

Do they cover branches and subsidiaries of foreign banks operating domestically? In the international banking context, one specific issue is to determine which country is responsible for regulating and supervising of foreign branches of banks. The U.S., for example, applies the 'national treatment' principle to foreign banking organizations operating in its jurisdiction. In contrast, the European Commission has opted for the 'home country principal. ' Network banking and international banking differ in one important respect: network banks do not establish branches. Consequently, regulators of network banks face a different problem.

They would either have to supervise and regulate banks in their jurisdiction that mainly attract funds and lend to foreign residents. Or, they would have to supervise and regulate network banks established in a foreign country with a large number of domestic customers. Thus, the question is: who is going to regulate a network bank with mostly foreign customers? The difference between international banking and network banking is depicted in Graph 1 and Graph 2 below. Graph 1 shows the flow of deposits when residents of country B are customers of a network bank located in country A. There is a cross-border flow of deposits from country B to country A. In contrast, in international banking, as shown in Graph 2, the 'traditional' retail bank, located in country A, establishes a branch in country B and attracts deposits of residents of country B. Consequently, there is no cross-border flow of deposits.

In the context of network banking, the problem is to determine which country - in terms of efficiency - is responsible for supervising and regulating a network bank that attracts mostly small depositors and borrowers form abroad. A related question is: which country should provide the safety net? For example, will it be necessary and, if so, feasible to insure a large number of citizens who have uninsured deposit abroad? When a domestic network bank has mostly foreign depositors, the incentives of domestic regulators to supervise the bank or to step in and provide lender-of-last-resort assistance when the bank is in trouble could be affected. Consider, for example, a Swiss network bank that attracts a large number of small German depositors and borrowers. When the banks fails, the Germans would be hurt while Switzerland's reputation, as a safe haven would suffer.

If the bank were sufficiently large, both countries would have an incentive to step in as a lender of last resort. However, the German Bundesbank would prefer the Swiss National Bank to do the dirty work and the Swiss National Bank would like to see the German Bundesbank step in. In contrast, consider the failure of a Swiss bank subsidiary operating in Germany. The failure of this bank would hurt not only German customers but also German's reputation as a safe haven. It would also, but to a lesser extent, damage Switzerland's reputation for secure investments. While this is an extreme example, it shows that the incentives of regulators and lender-of-last-resort agencies could respond differently when a bank's customer base consists mainly of foreign residents.

It also shows that supervision and regulation of network banks is inherently an international policy issue. To create a stable financial environment, international coordination is essentialConclusionThe Internet, particularly the World Wide Web, is changing our lives. Public computer networks are part of today's technology that drives the information revolution - an analogy to the industrial revolution of two centuries ago. This analogy stresses the common feeling that some significant and exciting developments are underway. The financial sector could be radically changed by information technologies, and public computer networks could play a major role in this turmoil. The financial services sector could be affected comparably more than any other sector in the economy because financial services are information commodities which can be easily traded on public computer networks.

Two results emerge from this analysis. 1. Network banks are more vulnerable to bank runs and the 'gamble for resurrection' problem. Bank runs are more likely because news and rumors spread quickly across public computer networks and depositors can transfer funds with the push of a button.

Consequently, a bank facing a bank run and public regulatory agencies have less time to take appropriate measures to prevent the bank's failure. At the initial stage, before network banking majors, security problems could be a major source for instability. The 'gamble for resurrection' problem is aggravated because bank managers who want to avoid outside interference can credibly threaten to move their business to another jurisdiction. This credible threat could make public agencies 'soft' and lower their incentives to intervene or close an insolvent bank when it is optimal to do so.

2. The trans nationality of network banks could increase the difficulty of enforcing national and supranational banking regulations for the following reasons. First, for many types of cross-border financial services it would be unclear as of which nation's regulations apply. Second, regulatory regimes for different countries compete with each other. Thus, a 'soft' country can attract customers and financial institutions. Third, the incentives to supervise, regulate, and provide the safety net for network banks could be affected when the bank's customer base consists mainly of foreign residents.

A major conclusion of the banking literature is that the need for public intervention comes from the potential instability of banking markets (Baltensperger and Dermine, 1990). Lack of enforcement and lack of adequate regulations could adversely affect the financial system's stability. Despite its importance, there exists no systematic research on the economic implications of financial intermediation on public computer networks. This paper is a first incomplete step in analyzing the economic implications of network banks.

Further analysis will be valuable in identifying emerging problems, and it will be a base for future policy recommendations. In particular, the emergence of network banks requires revision of current national and international banking regulations. It is important that new regulations be based on reliable analysis to avoid either overreaction that would stifle these innovations or neglect the potential for instability in the world of banking. Compiled By: So hail N isar

Bibliography

Britt, P. (1995, February).
Savings&Community Banker. Humphreys, K. (1995).
Security First Network Bank. web Banking. (1995, May 17).
Web Tech, Inc. Online information. Kay, A. (1995, August 14).
Interactive Applications. Communications Week, 36-40. Lunt, P. (1995, September).
ABA Banking Journal, 46. Wells Fargo Bank. (1995, May).
The Orange County Register. E. Baltensperger and J. Dermine, 1987.
Banking Deregulation in Europe,' Economic Policy, Volume 2, number 4, pp. 63-109. E. Baltensperger and J. Dermine, 1990.
European Banking, Prudential and Regulatory Issues,' In: J. Dermine, (ed. ), European Banking in the 1990's.
Oxford: Basil Blackwell. S. Bhattacharya and A. Thakur, 1993.
Contemporary Banking Theory,' Journal of Financial Intermediation, Volume 3, pp. 2-50. M. Dewatripont and J. Tirole, 1993.