We examine the business model of traditional commercial banks in the context of their co-existence with shadow banks. While both types of intermediaries create safe "money-like" claims, they go about this in different ways. Traditional banks create safe claims by relying on deposit insurance,...

Unlike previous research that focused on how technology influences asset ownership, the focus here is on how the environment of a firm impacts its business procedures and business activities.Also explored are several models that hypothesize about the lending habits of small and large banks....

We examine the business model of traditional commercial banks in the context of their co-existence with shadow banks. While both types of intermediaries create safe "money-like" claims, they go about this in very different ways. Traditional banks create safe claims with a combination of costly...