Why Are there So Many Banking Crises? The Politics and Policy of Bank Regulation phần 5 ppsx

... between the banks and the DIF on the one hand, and pure public supervision on the other hand. Proposition 4.3. A purely private organization of the banking sector leads to too many closures in the ... interbank market: ˆ ρ 2 ≡ ρ 2 +ρ 21 . The harder the liquidity shock hitting bank 1, the lower the value of the interbank loan and the higher the overal...

Ngày tải lên: 10/08/2014, 07:21

... Introduction and Outline of the Book 1 References 14 PART 1. WHY ARE THERE SO MANY BANKING CRISES? 19 Chapter 1. Why Are there So Many Banking Crises? Jean-Charles Rochet 21 1.1 Introduction 21 1.2 The Sources ... INTRODUCTION AND OUTLINE OF THE BOOK Why Are there So Many Banking Crises? Part 1 contains a nontechnical presentation of t...

Ngày tải lên: 10/08/2014, 07:21

... discipline. Proof. See the appendix (section 7.7). When the number of banks increases, the insolvency of one bank has a lower impact on the value of the deposits in the other banks. Similarly, an ... Two of the possible solutions are the use of collaterals previously supplied by bank j (as on CHIPS, see below) and the granting of liquidity loans by the...

Ngày tải lên: 10/08/2014, 07:21

... 31 — #43 ✐ ✐ ✐ ✐ ✐ ✐ WHY ARE THERE SO MANY BANKING CRISES? 31 the activities of all banks. This feature is illustrated by the failure of the Basel Committee to impose the standardized approach ... average the fiscal cost of each of these recent banking crises was of the order of 12% of the country’s GDP but exceeded 40% in some of the most recent...

Ngày tải lên: 10/08/2014, 07:21

... 0. (3.8) Conditions (3.7) and (3.8) are satisfied if the costs of efforts e 0 and e 1 are small and if δ (the increase in the probability of success) and ∆β (the reduction in the probability of solvency) are large. ... R may come from the supervisory knowledge of the central bank or perhaps by observing the amount of withdrawals of the bank. Then t...

Ngày tải lên: 10/08/2014, 07:21

... predecessor, the LLR of the twenty- first century lies at the intersection of monetary policy, supervision and regulation of the banking industry, and organization of the interbank market. The issue ... the first version of the model there are only two protagonists: 5 the “banker” (who represents the collective interests of the bank s managers...

Ngày tải lên: 10/08/2014, 07:21

... the liquidation of bank 1 triggers the liquidation of all other banks (too-big-to-fail). (ii) If λ>2α/D 0 , liquidation of banks 2 or 3 does not trigger the liquidation of either of the other ... now turn to the other side of the relationship between efficiency and stability of the banking system, and investigate under which conditions the closure at tim...

Ngày tải lên: 10/08/2014, 07:21

... of a constrained bank; C, new choice of the same bank. In this example the failure probability of the constrained bank has increased after the imposition of the capital requirement. On the other ... firms. Figure 9.2 represents the typical pattern of the value of the bank s equity E, as a function of the value A of its assets, in the case where deposi...

Ngày tải lên: 10/08/2014, 07:21

... contingent on the level of risk chosen by the bank. Then they examine the complementarity between two policy instruments of bank regulators: the level of capital requirements and the intensity of supervision. ... model. Notice that there are two reasons why the Modigliani and Miller (1 958 ) theorem is not valid in our model: the value of the bank is...

Ngày tải lên: 10/08/2014, 07:21

... of organizations in that regard. There are those which really do treat their peo- ple with care and sensitivity, because they are concerned with attraction and retention. And there are also those that have ... memo ries. The latter 134 50 T OP E XECUTIVE C OACHES the real ity that neither the companies they lead nor their society will make it unless they bring the v...

Ngày tải lên: 09/08/2014, 16:21