 The Economics of Bank RegulationSudipto Bhattacharya, Arnoud Boot and Anjan Thakor () Journal of Money, Credit and Banking, 1998, vol. 30, issue 4, 745-70 Abstract: The authors review the economics of bank regulation as developed in the contemporary literature. They begin with an examination of the central aspects of modern banking theories in explaining the asset transformation function of intermediaries, optimal bank liability contracts, coordination problems leading to bank failures and their empirical significance, and the regulatory interventions suggested by these considerations. In particular, the authors focus on regulations aimed primarily at ameliorating deposit-insurance-related moral hazards, such as: cash-asset reserve requirements, risk-sensitive capital requirements and deposit insurance premia, and bank closure policy. Moreover, they examine the impact of the competitive environment (bank charter value) and industry structure (scope of banks) on these moral hazards. They also examine the implications of banking theory for alternatives to deposit insurance. Date: 1998 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:30:y:1998:i:4:p:745-70 Access Statistics for this article Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West More articles in Journal of Money, Credit and Banking from Blackwell Publishing |
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