The European Redemption Pact (ERP), a proposal of the German Council of Economic Experts, describes an exit strategy from the debt crisis which currently plagues the euro area. The pact includes a binding commitment of all participating countries to bring public debt ratios below the reference...

Using a theoretical model where financial advising is done by banks, we show one additional explanation for the stockholding puzzle. Thus, we hypothesize that in countries with high level of relationship banking more households invest in riskfree assets

The proposal “Convertible/Bail-inable Dividend Bonds“ aims to reduce limited liability of bank owners: We propose that part (or the whole) dividends of the banks are not paid out cash to the equity holders. The dividends of the banks are given to the supervisory authority, which issues...

The paper analysis the effect of the proposal “Convertible/ Bail-inable Dividend Bonds“ (Doluca, 2023) on inefficient risk-taking behavior of a bank that is acting in a Monopoly. The approach “Convertible/Bail-inable Dividend Bonds “propose that part (or the whole) dividends of the banks...

This paper presents a proposal for a regulatory regime aimed at reducing systemic risk effectively and internationally. Systemic relevance should be internalized with a levy (or tax), the level of which (or tax rate) rises with the systemic relevance of an institution (Pigouvian taxation). The...

The European Redemption Pact (ERP), a proposal of the German Council of Economic Experts, describes an exit strategy from the debt crisis which currently plagues the Euro-Area. The pact includes a binding commitment of all participating countries to bring public debt ratios below the reference...