774 Book reviews

financial decisions of industrial firms. The conclusion is that households' financial

choices largely depend upon national institutional factors, particularly in consider-
ing the non-marketable part of their portfolio. Firms' financial attitudes seem to be
constrained by different productive structures more than by different market
structures, and from this point of view the integration process is viewed as to be
slower than expected. The second part examines the functioning of financial
markets, and three papers deal with the exchange market, the equity market and
the bond market. These are clearly affected by the liberalization process, and show
an increase in price volatility. The last part examines the impact of deregulation on
financial intermediaries, and on the asset and liability management.

Ellinger, E.P., Lomnicka, E., Modern Banking Law (2nd ed. - Clarendon Press,
Oxford, 1994) 746 pp.

This is a thoroughly updated version of the first 1987 edition. The revision is
carried out to take into account the developments and substantial changes in
banking law and practices that have taken place since 1987. Each chapter of the
book has therefore been revisited, both in light of new cases and decisions in the
English Law doctrine (a list of all examined cases is in table 1 of the book), and
with respect to the reforms of English Banking Law due to the implementation of
EC directives (Banking Coordination Regulation 1992 - Second Council Direc-
tive). The book focuses mostly on English Law, but with a wide discussion of
different Canadian, American and Australian cases. The aim is to provide a
thorough overview of the banking legislation within the context of the general
legal doctrines, but also underlining the attention on its economic function. Part I
deals with banks and the banking business, examining the different kinds of
banking structures active in the United Kingdom, the control of banking activities
and the relevant EC directives. Part II is devoted to the bank-customer relation-
ship, and examines both roles of the bank of providing account services (deposits)
and transactions (payments mechanism). Particular attention is devoted to the
banks' liability as a constructive trustee. The third part discusses the "asset-side"
of the relationship, and is devoted to current accounting financing and loans,
acceptance credits and bills of exchange, and securities for bankers' advance.

Herring, R.J., Litan, R.E., Financial Regulation in the Global Economy (The
Brookings Institution, Washington, DC, 1995) 187 pp.

Within the context of the growing globalization of the intemational financial

system, the book provides a framework for understanding the regulations on
intemational policy objectives that countries have agreed on so far, in order to
avoid cross-border restrictions on financial instruments that would ultimately