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Post-Crisis Regulatory Reform in Banking : Address Insolvency Risk, Not Illiquidity!
Thakor, Anjan V. - 2018
An extensive review of the evidence related to the 2007-09 crisis reveals that it was an insolvency risk crisis, not a liquidity crisis. The appropriate post-crisis regulatory reform should therefore focus on increasing capital requirements. The Basel III liquidity requirements do not serve a...
Persistent link: https://www.econbiz.de/10012929698
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Caught between Scylla and Charybdis? : regulating bank leverage when there is rent seeking and risk shifting
Acharya, Viral V.; Mehran, Hamid; Thakor, Anjan V. - 2010 - Rev.
bank debt too safe. The optimal capital regulation requires that a part of bank capital be unavailable to creditors upon …
Persistent link: https://www.econbiz.de/10008657183
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Higher Purpose, Corporate Culture and Governance in Banking
Thakor, Anjan V. - 2020
governance in banking to improve ethics and culture, and de-emphasize liquidity regulation. It also advocates the embrace of … have evolved in banking since the financial crisis. It concludes that we need to strengthen capital ratios and equity … authentic organizational higher purpose in banking as a way to foster stability and growth …
Persistent link: https://www.econbiz.de/10012844843
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Warehouse Banking
Donaldson, Jason - 2017
We develop a theory of banking that explains why banks started out as commodities warehouses. We show that warehouses …
Persistent link: https://www.econbiz.de/10012954164
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Caught between Scylla and Charybdis? Regulating Bank Leverage When There is Rent Seeking and Risk Shifting
Acharya, Viral V. - 2015
We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced against the benefit of equity in attenuating risk-shifting. However, faced with socially-costly correlated bank failures, regulators bail out creditors. Anticipation of this...
Persistent link: https://www.econbiz.de/10013038182
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Caught between Scylla and Charybdis? Regulating Bank Leverage When There is Rent-Seeking and Risk-Shifting
Acharya, Viral V. - 2015
We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced against the benefit of equity in attenuating risk-shifting. However, faced with socially-costly correlated bank failures, regulators bail out creditors. Anticipation of this...
Persistent link: https://www.econbiz.de/10013038378
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Political Influence, Bank Capital, and Credit Allocation
Huang, Sheng; Thakor, Anjan V. - 2023
– the interplay between credit-allocation regulation and bank capital structure …
Persistent link: https://www.econbiz.de/10014258594
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Bank Capital, Loan Trading and Funding Liquidity Creation
Song, Fenghua; Thakor, Anjan V. - 2022
diminish the value of the bank's core intermediation service? Using a banking model in which borrowers face production output … - there is a socially optimal price that maximizes the banking system's funding liquidity creation. The unregulated …
Persistent link: https://www.econbiz.de/10013403266
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Ethics, Culture and Higher Purpose in Banking : Post-Crisis Governance Developments
Thakor, Anjan V. - 2020
This paper examines the roles of ethics, culture, and higher purpose in banking, defining these concepts and discussing … banking. The theoretical and empirical research on ethics, culture and purpose is reviewed, including a discussion of a …
Persistent link: https://www.econbiz.de/10012839567
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Household Debt Overhang and Unemployment
Donaldson, Jason Roderick - 2019
We use a labor-search model to explain why the worst employment slumps often follow expansions of household debt. We find that households protected by limited liability suffer from a household-debt-overhang problem that leads them to require high wages to work. Firms respond by posting high...
Persistent link: https://www.econbiz.de/10012895642