Some Difficulties with the Pre-commitment Approach

The Pre-commitment approach (PCA) raises several concerns from a supervisor's perspective: the system of penalties which is envisaged is not efficient, the PCA may add to the financial instability, the supervisors are supposed to be on the side line contrary to their role to promote a sound financial system. More than a new approach to market risks, supervisors have now to devote their efforts to review the credit risk regulations.

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Year of publication:	1998
Authors:	Duchateau, Alain
Published in:	Swiss Journal of Economics and Statistics (SJES). - Schweizerische Gesellschaft für Volkswirtschaft und Statistik / Société Suisse d"Économie et de Statistique - SGVS/SSES, ISSN 0303-9692. - Vol. 134.1998, IV, p. 639-644
Publisher:	Schweizerische Gesellschaft für Volkswirtschaft und Statistik / Société Suisse d"Économie et de Statistique - SGVS/SSES

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005148973