000			01279nam a22001577a 4500
008			190323b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aWarehouse banking / by Jason Roderick Donaldson, Giorgia Piacentino & Anjan Thakor _c Jason Roderick Donaldson, Giorgia Piacentino & Anjan Thakor
300			_aPages 250-267
440			_aJournal of Financial Economics _v129 (2) _x0304-405X
500			_aAbstract We develop a theory of banking that explains why banks started out as commodities warehouses. We show that warehouses become banks because their superior storage technology allows them to enforce the repayment of loans most effectively. Further, interbank markets emerge endogenously to support this enforcement mechanism. Even though warehouses store deposits of real goods, they make loans by writing new fake warehouse receipts, rather than by taking deposits out of storage. Our theory helps to explain how modern banks create funding liquidity and why they combine warehousing (custody and deposit-taking), lending, and private money creation within the same institutions. It also casts light on a number of contemporary regulatory policies.
690			_aBanking
690			_aPrivate money
690			_aFinancial history
942			_2lcc _cSE
999			_c361361 _d361361