01930cas a2200265 a 4500 AALejournalIMF001770 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451974249 1018-5941 BD-DhAAL BD-DhAAL Lee, Howard. Bank Risk and the Declining Franchise Value of the Banking Systems in the United States and Japan / Howard Lee, Liliana Rojas-Suarez, Steven Weisbrod. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (58 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper associates both the increase in risk taken by wholesale banks in the United States and the decline in earnings at wholesale banks in Japan with a reduction in the franchise value of wholesale banking. In contrast with the conventional view that relates the franchise value of banking to informational advantages over other lenders, this paper argues that banks' franchise value originates in their provision of liquidity and payments services to their customers. Therefore, the decline in corporate demand for bank liquidity is identified as a major factor explaining the fall of the franchise value. The paper also analyzes recent proposals for banking reform and assesses their relevance for dealing with the problems of wholesale banks. Mode of access: Internet Rojas-Suarez, Liliana. Weisbrod, Steven. IMF Working Papers; Working Paper ; No. 1992/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/045/001.1992.issue-045-en.xml IMF e-Library