The Optimal Exclusion Length of Borrowers after Default

We determine the optimal length of exclusion from borrowing after a default that allows the bank to ensure that borrowers do not default strategically. We find that the optimal length of exclusion is smaller if borrowers are less risky, have higher returns, markets are more competitive, deposit rates for banks are low, and the more patient market participants are

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Year of publication:	[2022]
Authors:	Krause, Andreas
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| Insolvenz \| Insolvency \| Öffentliche Schulden \| Public debt

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Extent:	1 Online-Ressource (5 p)
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.4164359 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013404639