Trade-offs in Bank Resolution

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 consequenc...

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Bibliographic Details
Main Author: Dell'Ariccia, Giovanni
Other Authors: Martinez Peria, Maria, Igan, Deniz, Awadzi, Elsie Addo
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:Staff Discussion Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:42 pages
ISBN:9781484341001