Banking and Economic Rent in Asia

Analyses of financial crises reveal that the incentive created by neoliberal financial principles is inconsistent with stable financial systems, and viable solutions require structuring institutions in a way so that incentives are well aligned with the fundamental principles of financial system. _x005F_x000D_ _x005F_x000D_ By drawing on the theoretical framework of the financial restraint model, this book analyses financial sectors’ rents or bank rents and their effects on banks’ performance and stability, and presents evidence on the relationship between rent and incentive through case studies of both developed and developing countries.