The cost of market versus regulatory discipline in banking
Article Abstract:
Regulatory discipline has the tendency to negatively affect market discipline in regulated industries, such as banking. A sample composed of announcements of credit rating changes for bank holding firms from January 1990 to December 1995 revealed a relationship between Moody's downgrades and a bank's negative abnormal equity returns. It was also revealed that insured deposit financing protects banks from market discipline's full costs.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1998
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Bankers on boards: monitoring, conflicts of interest, and lender liability
Article Abstract:
Tthe conflict of interest and lender's liability are discussed when a bank monitors a firm by owning an interest therein and is represented in the Board of Directors of the firm.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2001
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Financial intermediation as a beliefs-bridge between optimists and pessimists
Article Abstract:
The importance of bank capital in minimizing the credit risks of investment companies is examined.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2005
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