Prior to the Great Depression, regulators imposed double liability on bank shareholders to ensure financial stability … and protect depositors. Under double liability, shareholders of failing banks lost their initial investment and had to pay … up to the par value of the stock in order to compensate depositors. We examine whether double liability was effective at …

Prior to the Great Depression, regulators imposed double liability on bank shareholders to ensure financial stability … and protect depositors. Under double liability, shareholders of failing banks lost their initial investment and had to pay … up to the par value of the stock in order to compensate depositors. We examine whether double liability was effective at …

We investigate the effects of the abolition of double liability requirement imposed on bank shareholders in Canada on … bank risk-taking and lending behavior. Under the double liability rule, the shareholders of a bank were liable up to twice … double liability requirement became less stringent and depended on the pace of the redemption of notes in circulation issued …

We investigate the effects of the abolition of double liability requirement imposed on bank shareholders in Canada on … bank risk-taking and lending behavior. Under the double liability rule, the shareholders of a bank were liable up to twice … double liability requirement became less stringent and depended on the pace of the redemption of notes in circulation issued …

implementation of the double liability for the bank shareholders.The demand deposits insurance eliminates the incentive to bank runs … induced by the demand deposit insurance.The double liability forces the shareholders of the defaulting banks to make …