THE DICHOTOMY BETWEEN THE THEORETICAL APPROACH AND THE INDICATORS OF THE US BANKING SECTOR

Authors : Yavuz Selim Elmas

Pages : 0-0

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Publication Date : 2014-05-01

Article Type : Research

Abstract :In this paper, we mainly focus on the theoretical approach towards the banking management in US economy and compare the real economy macro-prudential with the US banking sector’s indicators during the pre-crisis and post-crisis by analyzing historical and fundamental data. We argue that, unlike the theoretical approach and teaching of economics discipline, the banking performance and its reflections into the US economy has followed different and unpredictable path. In other words, we state that many real side economy indicators which include different sorts of dynamics and perspective about the US economy contradicts the theoretical approach of economics teaching. Moreover, even if the regulators in US, especially FED, have taken offensive and aggressive policies for the banking sector, its soundness and effectiveness are questionable because of the fact that the transmission mechanism and profitable and confidential economic environment have not been activated. Therefore, the more unconventional and authentic policy recommendations should be taken into consideration in order to overcome complex and intricate financial environment problems.
Keywords : US financial crisis, banking management, regulations, transmission mechanism