000			01713nam a22001577a 4500
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100			_aBerdell, John and Mondschean, Thomas _926761
245			_aRetrospectives: Regulating banks versus managing liquidity: Jeremy bentham and henry thornton in 1802
260			_aThe Journal of Economic Perspectives
300			_a34(4), Fall, 2020: p.195-209
520			_aAt nearly the same moment, Jeremy Bentham and Henry Thornton adopted diametrically opposed approaches to stabilizing the financial system. Henry Thornton eloquently defended the Bank of England's actions as the lender of last resort and saw its discretionary management of liquidity as the key stabilizer of the credit system. In contrast, Jeremy Bentham advocated the imposition of strict bank regulations and examinations, without which, he predicted, Britain would soon experience a systemic crisis—which he called "universal bankruptcy." There are strong parallels but also dramatic differences with our recent attempts to reduce systemic risk within financial systems. The Basel III bank regulatory framework effectively intertwines Bentham's and Thornton's diametrically opposed approaches to stabilizing banks. Yet Bentham's and Thornton's concerns regarding the stability of the wider financial system remain alive today due to financial innovation and the politics of responding to financial crises. - Reproduced
650			_aBanks; Depository Institutions; Micro Finance Institutions; Mortgages, Financial Institutions and Services, Government Policy and Regulation _926762
773			_aThe Journal of Economic Perspectives
906			_aBANKING AND FINANCIAL INSTITUTIONS
942			_cAR