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Chapter 10 Innovation and Structure in Banking and Finance

Chapter Objectives

By the end of this chapter, students should be able to:

  1. Explain why bankers and other financiers innovate.
  2. Explain how widespread unit banking in the United States affected financial innovation.
  3. Explain how the Great Inflation of the 1970s affected banks and banking.
  4. Define loophole mining and lobbying and explain their importance.
  5. Describe how technology changed the banking industry after World War II.
  6. Define traditional banking and describe the causes of its demise.
  7. Define industry consolidation and explain how it is measured.
  8. Define financial conglomeration and explain its importance.
  9. Define industry concentration and explain how it is measured.