Best Paper - Volume 3

The D. P. Jacobs Prize for the most significant paper in Volume 3 of the Journal of Financial Intermediation has been awarded to Sudipto Bhattacharya and Anjan V. Thakor for "Contemporary Banking Theory" published in Volume 3, Issue 1. The prize carries with it a $5,000 check for the winners.

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Contemporary Banking Theory
Sudipto Bhattacharya
Delhi School of Economics, Delhi, India 110007
AND
Anjan V. Thakor
School of Business, Indiana University, Bloomington, Indiana 47405

Abstract

We review the contemporary theory of financial intermediation. The focus is on contributions in the past 15 years or so that have advanced our understanding of why financial intermediaries exist, the credit allocation and other services they provide in spot and forward credit markets, the contractual nature and allocational consequences of the claims they issue, and the optimal design of bank regulation. Journal of Economic Literature Classification Numbers: 310, 312, 314. ©1993 Academic Press, Inc.