THE INVISIBLE HAND AND THE BANKING TRADE: SEIGNIORAGE, RISK-SHIFTING, AND MORE
| Autor: | Miller, Marcus, Zhang, Lei |
|---|---|
| Rok vydání: | 2013 |
| Předmět: |
G28
Seigniorage Central Banks and Their Policies Money and banking jel:E41 jel:E58 jel:G21 Demand for Money jel:G28 Government Policy and Regulation [Financial Institutions and Services] Risk-taking Bailouts Regulation Economie Banks Other Depository Institutions Micro Finance Institutions Mortgages G21 E58 E41 |
| Zdroj: | Brussels Economic Review / Cahiers économiques de Bruxelles Brussels economic review, 56 (3-4 |
| Popis: | The classic Diamond-Dybvig model of banking assumes perfect competition and abstracts from issues ofmoral hazard. To reflect conditions prevailing in UK banking, however, we incorporate market powerand risk-taking by banks with limited liability, with explicit analytical results for the case wheredepositors are highly risk averse. We show how the effectiveness of bank franchise value in checkingrisk-taking may be undermined by the prospect of bailouts; and how bail-in provisions are beingdesigned to correct this. info:eu-repo/semantics/published Special Issue30th Symposium on Money, Banking and FinanceGuest editors: Christian Aubin, Noëlle Duport andDaniel Goyeau |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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