This writer has not worked quite alone. The model developed in Part 1 and extended in Part 3 is that first provided in a paper presented to the Sixth Conference of Economists, Hobart, Australia in May 1977 entitled 'A Theory of the Banking Firm and the Effects of Regulatory Constraints'. The co-author of that paper, Sheila M. Bonnell, of course should be regarded as co-author of the model, without being held responsible for any inadequacies that remain. Our experience in the production of the model confirms the view that in the case of foursector diagrams, two sets of eyes are better than one. It is the present author's extreme regret that time and other intervening circumstances have prevented this book from having the same authorship as the paper.