| Description |
1 online resource (36 pages) : color illustrations |
| Series |
IMF working paper ; WP/13/94 |
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IMF working paper ; WP/13/94.
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| Contents |
Cover; Contents; I. Introduction; II. Data; A. Bank Risk Taking; B. Bank Support; C. Control Variables; D. Summary Statistics; E. Predictive Power of Government Support; III. Hypothesis and Empirical Strategy; IV. Results; A. Benchmark Regression; B. Robustness; V. Regulation and Government Support; VI. Conclusion; References; Figures; 1. Government Support, 1995-2011; Tables; 1. Sample by Country and Period; 2. Summary Statistics; 3. Correlations; 4. Government Interventions in Banks in 2008-2010 in Europe, by Country; 5. Government Support and Intervention in Banks |
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6. Bank Risk Taking and Government Support (Notches): z-Scores7. Bank Risk Taking and Government Support (Notches): z-Score Components; 8. Bank Risk Taking and Probability of Government Support Measured by Moody's; 9. Bank Risk Taking and Probability of Government Support Measured by Fitch Ratings; 10. Bank Risk, Valuation, and Government Support; 11. Bank Risk Taking, Government Support, Bank Supervision and Regulation |
| Summary |
"Government support to banks through the provision of explicit or implicit guarantees affects the willingness of banks to take on risk by reducing market discipline or by increasing charter value. We use an international sample of bank data and government support to banks for the periods 2003-2004 and 2009-2010. We find that more government support is associated with more risk taking by banks, especially during the financial crisis (2009-10). We also find that restricting banks' range of activities ameliorates the moral hazard problem. We conclude that strengthening market discipline in the banking sector is needed to address this moral hazard problem"--Abstract |
| Notes |
Title from PDF title page (IMF Web site, viewed May 6, 2013) |
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"Institute for Capacity Development"--Page 2 of pdf |
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"May 2013"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references (pages 21-23) |
| Subject |
Loans -- Government guaranty.
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Banks and banking -- Government policy
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Banks and banking -- State supervision.
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Financial risk.
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Moral hazard.
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Banks and banking -- Government policy
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Banks and banking -- State supervision
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Financial risk
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Loans -- Government guaranty
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Moral hazard
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| Form |
Electronic book
|
| Author |
Corrêa, Ricardo, author
|
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Sapriza, Horacio, 1974- author.
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International Monetary Fund. Institute for Capacity Development.
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| ISBN |
9781484379134 |
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1484379136 |
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9781484309346 |
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1484309340 |
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9781484373798 |
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1484373790 |
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