Beruflich Dokumente
Kultur Dokumente
Banking
John R. Boatright
Loyola University
Chicago, USA
ABSTRACT. No one disputes that trust and integrity are
important in banking, but it is more difficult to delineate
clearly what trust and integrity mean with regard to
banking and what role they play. Toward this end, I explain,
first, how the distinctive features of banking, which
differentiate this activity from other kinds of business,
create a particular need for trust and integrity. Despite this
need, however, I caution against placing too much reliance
on morality or ethics as a means of ensuring the proper
functioning of the banking system at the expense of other
important factors, which include market forces, government
regulation, and institutional design. Finally, I describe some
of the implications for trust and integrity from the changed
nature of modern banking, which I identify as the division of
the value chain, the new business as usual, and the
phenomenon of financialization.
KEYWORDS. Trust, integrity, banking, regulation, institutional
design, financial- ization
I.
INTRODUCTION
doi:
ETHICAL PERSPECTIVES
DECEMBER
2011
II.
HOW BANKING
IS
DIFFERENT
FROM
OTHER BUSINESSES
Ethical Perspectives
18 (2011) 4
AND
INTEGRITY
IN
special
role that invites admiration, as well as some
BANKING
suspicion and resentment. And the banking system is
generally con- ceived as both a necessity for an
economy and a danger to society. Indeed, Thomas
Jefferson is said to have commented, that banking
establish- ments are more dangerous than standing
armies. What is it about bank- ing that accounts for
these differences from other business pursuits?
One distinctive feature of banking results from its
unusual status with respect to markets. In capitalist
systems, markets are the main venue for economic
activity; they are the arenas in which buyers and
sellers exchange
Ethical Perspectives
18 (2011) 4
475
III.
WHY TRUST
NOT ENOUGH
IV. HOW
CHANGES
IN
AND INTEGRITY
V.
CONCLUSION
WORKS CITED
Andrews, Edmund L. 2008. Greenspan Concedes Error on
Regulation. New York Times,
October 23.
Coase, Ronald H. 1937. The Nature of the Firm. Economica N.S.
4: 386-405.
Coase, Ronald H. 1960. The Problem of Social Cost. Journal of
Law and Economics 3: 1-44. Davis, Gerald F. 2009. Managed by
the Markets: How Finance Re-Shaped America. New York:
Oxford University Press.