"At last the profession has an advanced book on the theory of banking.
Freixas and Rochet make a real contribution to the profession by integrating
a disparate but growing literature on intermediation. They show the role
that these institutions play in the economy and the complex nature of
optical decision making in an imperfect capital market. The book should be
required reading for serious students in the area." -- -Anthony M. Santomero, Richard K. Mellon Professor of Finance, Wharton School, University of Pennsylvania

ENDORSEMENT FROM THE FIRST EDITION

"The book is a major contribution to the literature on the theory of banking
and intermediation. It brings together and synthesizes a broad range of
material in an accessible way. I recommend it to all serious scholars and
students of the subject. The authors are to be congratulated on a superb
achievement." -- -Franklin Allen, Nippon Life Professor of Finance and Economics, Wharton School, University of Pennsylvania

ENDORSEMENT FROM THE FIRST EDITION

"This book provides the first comprehensive treatment of the microeconomics
of banking. It gives an impressive synthesis of an enormous body of
research developed over the last twenty years. It is clearly written and a
pleasure to read. What I found particularly useful is the great effort of
Xavier Freixas and Jean-Charles Rochet have taken to systematically
integrate the theory of financial intermediation into classical
microeconomics and finance theory. This book is likely to become essential
reading for all graduate students in economics, business, and finance." -- -Patrick Bolton, Professor of Economics, Ecare, Université Libre de Bruxelles; and CentER, Tilburg University

ENDORSEMENT FROM THE FIRST EDITION

"The authors have provided an extremely thorough and up-to-date survey of
microeconomic theories of financial intermediation. This work manages to be
both rigorous and pleasant to read. Such a book was long overdue and should
be required reading for anybody interested in the economics of banking and
finance." -- -Mathias Dewatripont, Professor of Economics, Ecare, Université Libre de Bruxelles