摘要
U.S.banks felt excess competitive pressure from both inside and outside because of financial liberalization,and liquidity brought about by a loose monetary policy intensif ied competition.To cope with the excess competition and pursue higher prof its,commercial banks turned to innovative financial products with high yields but high risks.Investment banks,insurance companies and policy banks also deviated from their original business;as a result,risks in the financial system rapidly accumulated and a financial ecological imbalance occurred - the primary cause of the current financial crisis.Lessons from financial resources allocation in the U.S.,Brazil and Japan show that since banks are special corporations with great social externalities,governments should institute financial restraint policies that clearly define the business boundaries between commercial finance and development finance to maintain financial system stability,magnify positive externalities and limit negative externalities.
U.S.banks felt excess competitive pressure from both inside and outside because of financial liberalization,and liquidity brought about by a loose monetary policy intensif ied competition.To cope with the excess competition and pursue higher prof its,commercial banks turned to innovative financial products with high yields but high risks.Investment banks,insurance companies and policy banks also deviated from their original business;as a result,risks in the financial system rapidly accumulated and a financial ecological imbalance occurred - the primary cause of the current financial crisis.Lessons from financial resources allocation in the U.S.,Brazil and Japan show that since banks are special corporations with great social externalities,governments should institute financial restraint policies that clearly define the business boundaries between commercial finance and development finance to maintain financial system stability,magnify positive externalities and limit negative externalities.
