Financial Innovation in Retail and Corporate Banking
Show Less

Financial Innovation in Retail and Corporate Banking

Edited by Luisa Anderloni, David T. Llewellyn and Reinhard H. Schmidt

This valuable book discusses in detail, through a blend of theory and empirical research, the processes of innovation and the diffusion of new financial instruments.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 2: Is Financial Innovation Still a Relevant Issue?

Luisa Anderloni and Paola Bongini


2. Is financial innovation still a relevant issue? Luisa Anderloni and Paola Bongini INTRODUCTION 1 Financial innovation has regularly been regarded as one of the major drivers for the radical changes underwent by international and domestic financial markets in particular during the 1980s and 1990s. The approach adopted in the literature on financial innovation has typically focused on: (i) the concept of innovation, its features and forms; (ii) the determinants of financial innovation; and (iii) the effects generated by innovation. The term ‘financial innovation’ has a broad range of both implicit and explicit definitions. Roger (1995, p. 11) defines ‘innovation’ as ‘an idea, practice, or object that is perceived as new by an individual or other unit of adoption. It matters little, so far as human behavior is concerned, whether or not an idea is objectively new as measured by the lapse of time since its first use or discovery. The perceived newness of the idea for the individuals determines his or her reaction to it. If the idea seems new to the individual, it is an innovation’. Specifically with regard to the financial sector, Silber (1975, p. 1), in outlining the scope of his work, states: This book is devoted to studies of innovation in the financial sector. It focuses on the innovation of new financial instruments, institutions, markets, and practices. Innovation means change. It usually implies progress as well, although this need not always be the case. While most economists have reserved the term...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.