Banking, interest intermediation and political power

Abstract

Abstract. This article seeks to introduce the concept of political power more explicitly into the discussion of the organizational attributes of societal interests. In pursuit of this objective, it defines a set of empirical indicators of the organisational conditions of interest intermediation systems that enhance the exercise of political power. The indicators are illustrated through a comparative study of the banking sector at the European Community level and in five countries: Canada, France, Germany, the United Kingdom, and the United States. The comparison of the banking sector interest intermediation systems shows that the power of banks in Germany rests not only on their equity participation in large industrial concerns, but also on a highly developed interest intermediation system, the most integrated of the five countries. The analysis demonstrates from still another perspective the close imbrication of the state and finance in France. Finally; the article demonstrates the deep fragmentation of the US associational system, a system that has acted as a serious obstacle to banking system reform in America.