Demsetz, Rebecca S.; Saidenberg, Marc R.; Strahan, Philip E. - In: Economic Policy Review (1996) Oct, pp. 1-14
As protectors of the safety and soundness of the banking system, banking supervisors are responsible for keeping banks' risk taking in check. The authors explain that franchise value--the present value of the stream of profits that a firm is expected to earn as a going concern--makes the...