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Book Cover
E-book
Author Agur, Itai.

Title Bank risk within and across equilibria / Itai Agur
Published [Washington, D.C.] : International Monetary Fund, [2014]
©2014
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Description 1 online resource (37 pages) : color illustrations
Series IMF working paper ; WP/14/116
IMF working paper ; WP/14/116
Summary "The global financial crisis highlighted that the financial system can be most vulnerable when it seems most stable. This paper models non-linear dynamics in banking. Small shocks can lead from an equilibrium with few bank defaults straight to a full freeze. The mechanism is based on amplification between adverse selection on banks' funding market and moral hazard in bank monitoring. Our results imply trade-offs between regulators' micrssrudential desire to shield individual weak banks and the macroprudential consequences of doing so. Moreover, limiting bank reliance on wholesale funding always reduces systemic risk, but limiting the correlation between bank portfolios does not"--Abstract
Notes "IMF - Singapore Regional Training Institute"--Page 2 of pdf
"July 2014"--Page 2 of pdf
Bibliography Includes bibliographical references (pages 31-36)
Notes Online resource; title from pdf title page (IMF.org Web site, viewed July 8, 2014)
Subject Bank liquidity -- Econometric models.
Banks and banking -- Risk management -- Econometric models.
Finance -- Econometric models.
Financial crises -- Prevention.
Moral hazard -- Prevention -- Econometric models.
Form Electronic book
Author IMF-Singapore Regional Training Institute.
International Monetary Fund.
ISBN 1498387365
9781498387361