Government-nanced bank restructuring programs, occasionally costing up to 50% of GDP,are commonly used to resolve banking crises. We analyze the Ramsey-optimal paths of bankrecapitalization programs that weigh recapitalization benets and costs under dierent nancingoptions. In our model bank...

Capital allocation is used for many purposes in financial institutions and for this purpose several methods are known. The aim of this paper is to review possible methods (we present six of them) and to help financial companies to choose between the methods. There are some properties that an...