Trade-offs in Bank Resolution
Business & Finance, Economics, Money & Monetary Policy, Macroeconomics
| Author: | Giovanni Dell'Ariccia, Maria Soledad Martinez Peria, Deniz O Igan, Elsie Addo Awadzi, Marc Dobler, Damiano Sandri | ISBN: | 9781484341452 |
| Publisher: | INTERNATIONAL MONETARY FUND | Publication: | February 9, 2018 |
| Imprint: | Language: | English |
| Author: | Giovanni Dell'Ariccia, Maria Soledad Martinez Peria, Deniz O Igan, Elsie Addo Awadzi, Marc Dobler, Damiano Sandri |
| ISBN: | 9781484341452 |
| Publisher: | INTERNATIONAL MONETARY FUND |
| Publication: | February 9, 2018 |
| Imprint: | |
| Language: | English |
This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins.
This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins.
