Building an incentive-compatible safety net
Article Abstract:
The federal government faces a considerable, unique set of challenges in constructing and managing a set of policies designed to protect banks from adverse shocks, also called a bank safety net, whose scope and costs can be enormous. It is argued that bank safety net policies must be crafted to maximize welfare that is controlled by economic and political constraints. A viable safety net mechanism is proposed that introduces credible market discipline into government deposit insurance in a manner that is most likely to survive adverse economic shocks and their political consequences.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
The poor performance of foreign bank subsidiaries: were the problems acquired or created?
Article Abstract:
The foreign acquisitions of US banks around the time of ownership change is examined to determine whether the observed poor performance of foreign subsidiaries are preexisting traits of the target bank or are the result of changes in business strategy. The evidence gathered shows that many of the problems were already present when the acquisition was completed. It is also worth noting that changes in business strategy by the foreign owners were generally failures in turning around a bank's poor performance level.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Empowering the inventor: The case of monoclonal antibodies. The patentability of antibodies in the United States
- Abstracts: Keeping tabs on trust performance. Going global in the search for returns. Murky waters lie offshore
- Abstracts: Private client services. Corporate finance in the north west: acquisitions dominate market
- Abstracts: Builders' bosses pay the price of failure. Long haul for the builders. Builders in dogfight as slowdown hits trade: the construction industry has learnt not to rely on economic recovery to bring about a revival in business. The continued shortage of work is making itself felt even among the sector's blue-chip players
- Abstracts: The information content of bankruptcy filing on securityholders of the bankrupt firm: an empirical investigation