Banks play a vital service in our lives by providing financial services that make our lives easier. Despite this, many still don’t understand how banks work. To help you, we’ve listed the five best books on how banks work to fix this issue.
These books ask questions like how banks earn a profit, the function of central banks, and the result of the failure of banks. You need to review the books to learn the answers to the questions mentioned.
List of 5 Best Books on How Banks Work
Banks are financial institutions that play a significant role in our lives even when we don’t notice. We need them to buy our homes, cars, and whatnot. But a lot of us don’t know how they work. This article tries to change that and hopefully stop the ignorance once and for all.
1. The Greed Merchants By Philip Augar
This book provides an excellent and straightforward exposure to the inherent conflicts of interest in commercial and investment banking. The book’s outstanding feature is its detailed assessment of contemporary investment banking.
This book details how investment bankers engage in illegal practices to gain insider knowledge, overcompensating themselves. Moreover, they have no qualms about who they rob to get their holiday bonuses.
They are willing to bankrupt existing firms and countries to enrich themselves and their investors. The author uses evidence to support his claims and cites events that make the book more enjoyable.
2. The House of Morgan By Ron Chernow
The book traces four generations of the Morgan financial empire and covers the kingdom’s reputation from highs to lows. The book delves into how it was the most powerful, untouchable, and devoted to its longtime clientele.
Furthermore, we see how the spinoffs of the original Morgan stray, particularly during the 80s M&A and LBO frenzy. The book does put some background into the 1987 crash and its likely cause, namely greed. Bankers profited greatly from LBOs while others suffered, a recurring theme emphasized throughout the book.
Furthermore, the author stresses that the financial scams accepted by all require radical thinking in the industry to be changed. This is why the book has made it to our list of best books on how banks work.
3. The End of Banking By Jonathan McMillan
The author argues that our current banking system is immoral, inept, and unsustainable. He highlights the need for radical thinking within the industry. The author also provides a clear and insightful explanation of the causes and effects of the recent financial crisis.
He demonstrates how similar crises tend to occur when banks and bankers are involved. Overall, the book is thoughtful and offers a new way of looking at the financial services industry’s potential. The author presents compelling arguments supported by evidence throughout the book.
On top of that, his vision of a more democratic and sustainable financial system is exciting and realizable. We loved the book and consider it one of the best on how banks work.
4. How the Other Half Banks By Mehrsa Baradaran
View on Amazon Get Two Audiobooks Free
The book provides a theoretical and historical foundation for a public option to help the vast population in the US that is unserved by existing financial institutions. A population that is regularly preyed on by cheque-cashing joints and payday lenders.
The bank presents the issues, the background, the previous remedies, the current alternatives, and the barriers to change. Additionally, it offers the most promising policy approach to the problem. A policy approach that can help the other half be brought under financial inclusion and reverse widening wealth gaps.
5. Limitless: The Federal Reserve Takes on a New Age of Crisis By Jeanna Smialek
The book is an incredible account of the Federal Reserve’s past. If you care about the state of the world today or want to better understand the factors that shape our economy, this book is required reading.
The author has a remarkable talent for bringing life to dry material. She does so by populating it with interesting and passionate people who have molded the Federal Reserve. Moreover, she forces the reader to ask questions about thought-provoking issues.
The author shows how the Fed’s actions, such as interest rate hikes, impact people’s lives. She also delves into the dangers and importance of American monetary policy. She also discusses the Federal Reserve’s influence on the global economy and geopolitics. This is why we think this is one of the most essential books on how banks work.
You may also read: 5 Getting Out of Debt Books For Financial Independence
Conclusion
In essence, many people find banks and the banking world enigmatic and complicated to understand. We are sympathetic to the viewpoint and have gone out of our way to talk about five books on how banks work.
These books provide in-depth analyses of banks and their impact on world economies. We hope that you’ll learn something new from this book as they are hordes of knowledge.
Frequently Asked Questions
Rabab Rayan is a senior year business undergrad at the Bangladesh University of Professionals with an insatiable appetite for reading. He has a particular enthusiasm for science fiction and mystery genres and can often be found exploring local bookshops and chatting with fellow bookworms about his latest reads.