Bank Insolvency Procedures and Market Discipline in European Banking

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Bank Insolvency Procedures and Market Discipline in European Banking

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dc.contributor.author Wihlborg, Clas en_US
dc.contributor.author Angkinand, Apanard en_US
dc.date.accessioned 2009-02-04T10:24:46Z
dc.date.available 2009-02-04T10:24:46Z
dc.date.issued 2006-01-02T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/6773
dc.description.abstract Predetermined, operational procedures for dealing with banks in distress are conspicuously absent across the world with very few exceptions. Instead governments and regulatory authorities intervene when banks approach failure. Bail-outs of important creditors, sometimes including shareholders, and blanket guarantees for creditors become the norm. We argue that efficient incentives of banks’ creditors, as well as of shareholders and managers, require predetermined rules for dealing with banks in distress, and a group of creditors that are credibly non-insured. Cross-border banking increases the need for pre-determined bank insolvency procedures that could enable banks to expand cross-border in branches. In the empirical part we show that credibility of non-insurance is maximized with a partial deposit insurance scheme, and that the coverage can be decreased if effective rule-based distress resolution procedures are implemented. en_US
dc.format.extent 23 s. en_US
dc.language eng en_US
dc.relation.ispartofseries LEFIC Working paper;2005-008 en_US
dc.title Bank Insolvency Procedures and Market Discipline in European Banking en_US
dc.type wp en_US
dc.accessionstatus modt06jan02 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Center for Law, Economics and Financial Institutions at CBS en_US
dc.contributor.departmentshort LEFIC en_US
dc.contributor.departmentuk Center for Law, Economics and Financial Institutions at CBS en_US
dc.contributor.departmentukshort LEFIC en_US
dc.idnumber x656504306 en_US
dc.publisher.city København en_US
dc.publisher.year 2005 en_US


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