search query: @indexterm FRAUD / total: 254
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| Author: | Bagus, P. Howden, D. |
| Title: | The legitimacy of loan maturity mismatching: a risky, but not fraudulent, undertaking |
| Journal: | Journal of Business Ethics
2009 : DEC II, VOL. 90:3, p. 399-406 |
| Index terms: | banking property rights loans fraud risk |
| Freeterms: | time deposits maturity mismatching reserve banking |
| Language: | eng |
| Abstract: | Barnett and Block (in Journal of Business Ethics, 2009) argue that the practice of borrowing short and lending long is illicit. Herein, through a combined economic and legal analysis, it is shown that while lending deposits can be regarded as illegal, the loan maturity mismatching is legitimate contrary to Barnett and Block's claim. There is involved no over-issuance of property rights with this practice once the distinction btw. present and future goods is considered. However, while the practice is not illicit in itself, it is assisted and developed via the presence of a fractional reserve banking system, and can sometimes produce harmful effects. |
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