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Informal financial institutions (IFIs), among them the ubiquitous rotating savings and credit associations, are of ancient origin. Owned and self-managed by local people, poor and non-poor, they are self-help organizations which mobilize their own resources, cover their costs and finance their...
Persistent link: https://www.econbiz.de/10010509346
This paper studies a banking model of maturity transformation in which regulatory arbitrage induces the coexistence of regulated commercial banks and unregulated shadow banks. We derive three main results: First, the relative size of the shadow banking sector determines the stability of the...
Persistent link: https://www.econbiz.de/10013049188
. Second, higher bank capital requirements may aggravate contagion since they may incentivise banks to hold similar assets, and …
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bank tax, and the U.S. administration has revived its own proposal for such a charge. This paper considers the structure … for taxing bank borrowing, perhaps as an adjunct to minimum capital requirements, at marginal rates that rise quite … higher than those of the bank taxes so far adopted or proposed …
Persistent link: https://www.econbiz.de/10013120772
We use a novel, household opinions-based measure – Public Confidence in a Bank – to explore the role of bank-level and … banks publicly monitored during 2010–2017. We find that public confidence in a bank is highly sensitive to the industry …-level financial stability indicators, but less sensitive to bank-level risk characteristics. This result reveals an important role of …
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