Regulations of Banking Groups

OPEN ARCHIVE

Union Jack
Dannebrog

Regulations of Banking Groups

Show simple item record

dc.contributor.author Harr, Thomas en_US
dc.contributor.author Rønde, Thomas en_US
dc.date.accessioned 2009-02-04T10:28:18Z
dc.date.available 2009-02-04T10:28:18Z
dc.date.issued 2007-12-17T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7708
dc.description.abstract We study the optimal regulation of banking groups ("banks”), taking both minimum capital requirements and legal structure into account. A bank can set up either as one legal unit facing limited liability jointly (branch structure) or as a bank holding company with subsidiaries (subsidiary structure). Banks are exposed to risk from their unobservable asset choices and to exogenous risk from their environment. We show that banks with branches are more prudent in normal times than banks with subsidiaries, but are also less prudent when problems arise. A regulator that observes banks’ exogenous risk should optimally determine both capital requirements and legal structure. If the exogenous risk is private information to banks, it can be optimal to screen banks according to risk by setting capital requirements appropriately, and letting banks choose their legal structure. en_US
dc.format.extent 33 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Discussion paper;2007-01 en_US
dc.title Regulations of Banking Groups en_US
dc.type wp en_US
dc.accessionstatus modt07dec17 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Centre for Economic and Business Research en_US
dc.contributor.departmentshort CEBR en_US
dc.contributor.departmentuk Centre for Economic and Business Research en_US
dc.contributor.departmentukshort CEBR en_US
dc.idnumber x656555989 en_US
dc.publisher.city København en_US
dc.publisher.year 2006 en_US


Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
artikel 01.pdf 700.6Kb PDF View/Open

This item appears in the following Collection(s)

Show simple item record