Banks have a special position in the financial system. Their exclusive link to the central bank puts them at the top of the financial system and enables banks to offer liquidity to the wider economy. They also provide loans and payment services to firms and households. This multifaceted nature of banking makes the economics of banking exciting. Together with an original introduction by the editor, this collection assembles the best 'banking' papers on all these dimensions and will be invaluable for all banking scholars and practitioners.