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Most analyses of banking crises assume that banks use real contracts. However, in practice, contracts are nominal and … this is what is assumed here. We consider a standard banking model with aggregate return risk, aggregate liquidity risk and … be achieved in a decentralized banking system. What is required is that the central bank accommodates the demands of the …
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Market discipline for financial institutions can be imposed not only from the liability side, as has often been stressed in the literature on the use of subordinated debt, but also from the asset side. This will be particularly true if good lending opportunities are in short supply, so that...
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with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …
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Market discipline for financial institutions can be imposed not only from the liability side, as has often been stressed in the literature on the use of subordinated debt, but also from the asset side. This will be particularly true if good lending opportunities are in short supply, so that...
Persistent link: https://www.econbiz.de/10010298270
with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …
Persistent link: https://www.econbiz.de/10010298271