Showing 1 - 1 of 1
Diamond-Dybvig model cast in a global games framework, we show that while the CoCo conversion of the issuing bank may bring … the bank back into compliance with capital requirements, it will nevertheless raise the probability of the bank being run … on other banks in the system in the likely case of correlated asset returns, so bank runs elsewhere in the banking system …
Persistent link: https://www.econbiz.de/10011255852