White Paper
A Framework for Understanding the Evolution of Financial Institutions
April 19, 2018
Financial institutions are financed by both investors – who expect an appropriate risk-adjusted return for providing financing and risk bearing – and customers – who provide financing in exchange for specific services. Robert Merton and Richard Thakor develop a framework that defines the roles of customers and investors at financial institutions, and use it to build an economic theory.
Explore All White Papers
Visit our extensive library of white papers on financial risk, AI, sustainability and climate, and more.