Showing 1 - 10 of 155
Persistent link: https://www.econbiz.de/10001588570
the returns on the bank's assets are going to be unusually low. In this paper we develop a simple model of this type of … panic. In this setting bank runs can be incentive-efficient: they allow more efficient risk sharing between depositors who … withdraw early and those who withdraw late and they allow banks to hold more efficient portfolios. Central bank intervention to …
Persistent link: https://www.econbiz.de/10012757441
Persistent link: https://www.econbiz.de/10001646103
Persistent link: https://www.econbiz.de/10001899523
Persistent link: https://www.econbiz.de/10002147193
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
five areas where new theories are needed. These are asset price bubbles, central bank checks and balances, global … imbalances, banking regulation, and competition in financial services. …
Persistent link: https://www.econbiz.de/10010664238
We provide a comprehensive review of the development and activities of the People's Bank of China over the half century …. First, the PBC has evolved from the mixture of a central bank and a commercial bank to the central bank of China, with the …
Persistent link: https://www.econbiz.de/10012949916
quality of individual banks is opaque but can be inferred by creditors from aggregate signals about bank solvency. When bank …. This information contagion is more likely under clustered asset structures. In contrast, when bank debt is long …
Persistent link: https://www.econbiz.de/10013067181
In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce...
Persistent link: https://www.econbiz.de/10013064301