RT Article
T1 A Comment on Barnett and Block on Time Deposit and Bagus and Howden on Loan Maturity Mismatching
JF Journal of business ethics
VO 104
IS 2
SP 219
OP 221
A1 Cachanosky, Nicolás
LA English
YR 2011
UL https://ixtheo.de/Record/1785643568
AB In Time Deposits, Dimension, and Fraud (2009), William Barnett and Walter Block argue that by borrowing short and lending long there is an over issuance of property rights. Their article, however, does not fully extend the consequences of their contribution. Once this is done, it becomes clearer that their argument suits a great impediment to banking, becoming a possible reason to support rather than to oppose fractional reserve banking. Bagus and Howden (J Bus Ethics 90(3):399–406, 2009) comment on Barnett and Block (J Bus Ethics 88(4):711–716, 2009), the authors claim that while maintaining the illegitimacy of fractional reserve deposits, borrowing short and lending long it is actually not illegitimate. An extension on Bagus and Howden (2009) will show that their line of argumentation can be applied as a defense of fractional reserve banking as well.
K1 Maturity mismatching
K1 100 percent reserve requirement
K1 Fractional reserve banking
K1 Time deposits
DO 10.1007/s10551-011-0900-3