Berger, A.N.; Bouwman, C.H.S.; Kick, T.; Schaeck, K. - Tilburg University, Center for Economic Research - 2011
During times of bank distress, authorities often engage in regulatory interventions and provide capital support to reduce bank risk taking. An unintended effect of such actions may be a reduction in bank liquidity creation, with possible adverse consequences for the economy as a whole. This...