Components of U.S. Financial Sector Growth, 1950-2013.

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  • Additional Information
    • Author-Supplied Keywords:
      asset management
      commercial banks
      Financial sector size
      firm size
      leverage
      regulation
      shadow banks
    • NAICS/Industry Codes:
      522190 Other Depository Credit Intermediation
      522120 Savings Institutions
      522110 Commercial Banking
      522111 Personal and commercial banking industry
    • Abstract:
      We provide measures of the size of the financial sector and its components, estimated relative to that of the total business (financial and nonfinancial) sector, and show how they relate to firm type, firm size and valuation. We find that the financial sector has been growing consistently since 1959, until reversed by the recent financial crisis. The relative size of finance is smaller when private firm liabilities are excluded. Although financial firms are more prevalent among large firms, on average large and small financial firms grew at similar rates. Shadow banks have doubled in size since the 1970s, and have grown consistently relative to traditional banks until the recent financial crisis. Small shadow banks have grown faster than large shadow banks, while the reverse is true for traditional banks. Finally, we find that, as compared to nonfinancial firms, the stock market has valued (as indicated by the market-to-book ratio) financial firms in general and traditional banks in particular lower, but shadow banks higher, and that this "value gap" has grown over time. Overall, these results show that growth in finance has mainly occurred in opaque, complex and less-regulated subsectors of finance. [ABSTRACT FROM AUTHOR]
    • Abstract:
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    • Author Affiliations:
      1Senior research analyst, Federal Reserve Bank of New York
      2Risk analytics associate, Federal Reserve Bank of New York
      3Assistant vice president, Federal Reserve Bank of New York
    • ISSN:
      1932-0426
    • Accession Number:
      95756587
  • Citations
    • ABNT:
      ANTILL, S.; HOU, D.; SARKAR, A. Components of U.S. Financial Sector Growth, 1950-2013. Economic Policy Review (19320426), [s. l.], v. 20, n. 2, p. 3–64, 2014. Disponível em: http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580. Acesso em: 23 jan. 2020.
    • AMA:
      Antill S, Hou D, Sarkar A. Components of U.S. Financial Sector Growth, 1950-2013. Economic Policy Review (19320426). 2014;20(2):3-64. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580. Accessed January 23, 2020.
    • APA:
      Antill, S., Hou, D., & Sarkar, A. (2014). Components of U.S. Financial Sector Growth, 1950-2013. Economic Policy Review (19320426), 20(2), 3–64. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580
    • Chicago/Turabian: Author-Date:
      Antill, Samuel, David Hou, and Asani Sarkar. 2014. “Components of U.S. Financial Sector Growth, 1950-2013.” Economic Policy Review (19320426) 20 (2): 3–64. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580.
    • Harvard:
      Antill, S., Hou, D. and Sarkar, A. (2014) ‘Components of U.S. Financial Sector Growth, 1950-2013’, Economic Policy Review (19320426), 20(2), pp. 3–64. Available at: http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580 (Accessed: 23 January 2020).
    • Harvard: Australian:
      Antill, S, Hou, D & Sarkar, A 2014, ‘Components of U.S. Financial Sector Growth, 1950-2013’, Economic Policy Review (19320426), vol. 20, no. 2, pp. 3–64, viewed 23 January 2020, .
    • MLA:
      Antill, Samuel, et al. “Components of U.S. Financial Sector Growth, 1950-2013.” Economic Policy Review (19320426), vol. 20, no. 2, Mar2014 Special Issue 2014, pp. 3–64. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580.
    • Chicago/Turabian: Humanities:
      Antill, Samuel, David Hou, and Asani Sarkar. “Components of U.S. Financial Sector Growth, 1950-2013.” Economic Policy Review (19320426) 20, no. 2 (Mar2014 Special Issue 2014): 3–64. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580.
    • Vancouver/ICMJE:
      Antill S, Hou D, Sarkar A. Components of U.S. Financial Sector Growth, 1950-2013. Economic Policy Review (19320426) [Internet]. 2014 Mar2014 Special Issue [cited 2020 Jan 23];20(2):3–64. Available from: http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=a9h&AN=95756587&custid=s6224580