Title | : | Trade-offs in Bank Resolution |
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Author | : | Giovanni Dell'Ariccia, Maria Soledad Martinez Peria & Deniz O Igan |
Release | : | 2018-02-09 |
Kind | : | ebook |
Genre | : | Economics, Books, Business & Personal Finance |
Size | : | 5082411 |
This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins. |