growth, suggesting that Asian banks are also subject to indirect market discipline mechanisms through bank market structure …. This study therefore sheds light on the importance of enhancing bank competition to overcome bank risk and strengthen … financial intermediation. This study also advocates greater reliance on market discipline to promote bank stability …

insurance coverage in 2013 and the role of financial intermediaries in the funding market changed this discipline. The database … size of banks and their capitalization being the main disciplining factors. Deposit insurance has reduced market discipline …. The results did not indicate the existence of market discipline through the quantity mechanism and deposit insurance did …

We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …