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Introduction: Spanish Banking?How Do We Explain a History of Fragility?
#MMPMIDC7320873
Royo S
Why Banks Fail
2020[Jun]; ? (?): 1-51
PMIDC7320873
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This introductory chapter outlines the framework of analysis to explain why
banking systems have been unstable in Spain, with a particular emphasis on the
2008 banking crisis and the 2012 financial bailout. It applies the framework
developed by Calomiris and Haber (Fragile by Design: The Political Origins of
Banking Crises & Scarce Credit. Princeton, Princeton University Press, 2014), and
argues that Spanish institutions could not prevent opportunities for the
development of rent-seeking coalitions between populist and bankers. This has led
to less stable banking system (i.e., more crisis prone) that has provided less
abundant credit. The chapter also places the book in the context of the wider
literature on financial systems and varieties of capitalism, describes what is
unique about this book, and examines the structure of the Spanish banking system.