Primarily analytical rather than descriptive, this text uses numerous case studies featuring real-world illustrations to reinforce the application of key concepts. Features: * Both authors have outstanding credentials, are well-known in the finance community and bring years of experience to this exciting new text. * The concept of "the use of information" provides a strong theoretical unification to analysis of financial intermediation and also links the text to contemporary research. * Numerous case studies feature real-world illustrations which reinforce the application of key concepts. * Boxes covering advanced material are incorporated throughout to accomodate students interested in more in-depth explanations. * Chapter 7 contains superior, detailed coverage of commercial bank contingent claims. * "Securitization and Loan Sales" (Chapter 8) is a topic absent in most competitive texts. * Numerous practice problems reinforce intuitive understanding of theoretical concepts. * Strong pedagogy includes: chapter glossaries, end-of-chapter review questions, real-world examples and cases.

Excellent mix of theory and applied work.
This book is the perfect liasion between the microeconomics realm of information economics and the real world of banking and financial intermediation. It supplies a healthy dose of microeconomic theory to fully understand the underlying features of the most common financial instruments used in modern banking practice, all explained thoroughly with down to earth narratives and doable math/game theoretic instruments. It makes a wonderful preview before going on with Freixas text, or at least as its companion.