Banking Regulation, Government Rent-seeking Study

Rent seeking was first proposed by American economist Anne O. Kruegerin 1970s. Buchannan(1980) defines it as the activities of the waste ofresource from the transaction of wealth by protection of government.Bank sector rent seeking , as it defines, means commercial bank and theirstaffs, in the management and related activities, for their own benefits,using the funds and related resource , breaking the laws and provision ,violating country , public and firm' s benefits.Nationalization of bank sector offers the soil of credit monopoly. Bankmonopolies the credit area by concession of government. For othereconomic sector is difficult to enter into this area or endure politicalrestriction, hence national bank earns rents of credit area. The uniqueendowment policy, supplies the convenient of creating money, supplyingfund, and control the allocation of scarce resource.The government officials who have the right of commanding these resource,for their own benefits , make more and more out-planning fund, attractsan transfers many firm' s fund demand, forming huge markets ofrent-seeking..The main points of the essay are analyzing the rent-seeking activitiesamong bank sector regulation, as the analyses of prior literature, tocombine the actual problem.The essay is composed of five parts, the main contents as follows,The first part is the definition of rent-seeking theory. Firstly definesthe definition and explains the rent-seeking as the basis of,The second part analyses the rent-seeking and the special of bankingsector rent-seeking. Use data to evaluate the loss caused by rent- seekingactivities.The following three parts strength positive analyses. From three perspectives: rent-seeking in regulation practice, rent-seeking betweennational bank, inner sector rent-seeking in banks.The last part is summary and also put forward some proposals.