Hassan, M. Kabir; Karels, Gordon V.; Peterson, Manferd O. - 1991
The "market discipline" of off-balance sheet banking activities (OBSA) has been reexamined by employing contingent … of contingent claims model and the impact of closure rules. Empirical results document the existence of "market … discipline" of some OBSA. Market participants price these OBSA as risk-reducing. Therefore, regulatory additional capital …