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In a partial-equilibrium model, removing a binding constraint creates value. However, in general equilibrium, the stakes of other parties in maintaining the constraint must be examined. In financial deregulation, the fear is that expanding the scope and geographic reach of very large...
Persistent link: https://www.econbiz.de/10012470122
This paper explains that financial safety nets exist because of difficulties in enforcing contracts and shows that elements of deposit-insurance schemes differ substantially across countries. It argues that differences in the design of financial safety nets correlate significantly with...
Persistent link: https://www.econbiz.de/10012470500
efforts to supervise and guarantee bank solvency. African depositors face high costs for mitigating the loss exposures that …
Persistent link: https://www.econbiz.de/10012470728
This paper outlines what problems asymmetric information creates for the financial system and shows and shows that the presence of asymmetric information explains why banks are so important. The paper then goes on to explain why prudential supervision of these institutions is needed, and what...
Persistent link: https://www.econbiz.de/10012470811
macroeconomic and bank regulatory reform. Bank regulatory policy promoted privatization, financial liberalization, and free entry …. Argentina's bank regulatory system now is widely regarded as one of the two or three most successful among emerging market …
Persistent link: https://www.econbiz.de/10012471046
their investors. We show the bank has to have a fragile capital structure, subject to bank runs, in order to perform these … functions. Far from being an aberration to be regulated away, the funding of illiquid loans by a bank with volatile demand … such as narrow banking and bank capital requirements …
Persistent link: https://www.econbiz.de/10012471328
This paper looks at why bank consolidation has been taking place in the United States and what the structure of the … banking industry might look like in the future. It then discusses the implications of bank consolidation for the economy and …
Persistent link: https://www.econbiz.de/10012472979
-Steagall Act forced the banks to leave the securities business: as an internal securities department within the bank and as a … lending and underwriting were closely combined in the departmental structure. We find evidence that bank managers during this … effectiveness of a firm. They also suggest that bank regulators' interest in 'firewalls' between commercial and investment banking …
Persistent link: https://www.econbiz.de/10012473619
This paper suggests that the introduction of bank branching restrictions and federal deposit insurance in the United …
Persistent link: https://www.econbiz.de/10012473667
New security designs, improvements in computer telecommunications technology and advances in the theory of finance have led to revolutionary changes in the structure of financial markets and institutions. This paper provides a functional perspective on the dynamics of institutional change and...
Persistent link: https://www.econbiz.de/10012473791