Landskroner, Yoram; Paroush, Jacob - In: International Journal of the Economics of Business 6 (1999) 2, pp. 197-207
The focus of this paper is on the interaction between a bail-out loan decision of a bank to a sovereign borrower and the adequacy of the bank's capital. The new loan is granted on two conditions: First, it must improve the likelihood of repayment of the outstanding loan; second the bank should...