The Role of the Banks

Abstract

The worldwide banking system put itself into a very exposed position in relation to developing country debt, and has been subject to a great deal of criticism. Perhaps the most vivid example of this are the views expressed by Anthony Sampson¹, who expresses trenchant criticism of the banks for what he would term the irresponsibility of their behaviour. His book encompasses accurately many features of the situation, although I criticised it in a review (see The Banker, November 1981) for seeming to fish for examples of foolish behaviour by the banks. His book does not provide a complete historical assessment of the period since the first oil shock, but it is very entertaining — and if you are after a criticism of the banks, there it is.