Journal ArticleDOI
Extended Shareholder Liability as a Means to Constrain Moral Hazard in Insured Banks
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In this article, the authors explore extended liability for bank shareholders as a method for mitigating moral hazard in insured banks, and discuss how extended liability can be used to avoid the difficulties of both micro-and macro-prudential approaches to systemic stability.Citations
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The Evolution of Bank Supervision: Evidence from U.S. States
TL;DR: This paper examined the origins of bank supervision and assess factors leading to the creation of formal bank supervision across US states, showing that it took more than a century for the widespread adoption of independent supervisory institutions tasked with maintaining the safety and soundness of banks.
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Governing the banking system: an assessment of resilience based on Elinor Ostrom's design principles
TL;DR: In this paper, the design principles for robust governance institutions proposed by Nobel laureate Elinor Ostrom are applied to banking systems and explore under what conditions a banking system can be expected to discover rules that align private incentives with broader financial stability, and generate the necessary knowledge to govern such a complex system.
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Berle's Vision Beyond Shareholder Interests: Why Investment Bankers Should Have (Some) Personal Liability
TL;DR: In this paper, the authors propose two mechanisms that imposed personal liability in an earlier era: general partnership and assessable stock, which was relatively common in corporations including some commercial banks through the 1930s, and discuss in future publications in more detail to impose some measure of personal liability for a bank's debts on the most highly paid bankers.
References
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Book
Risk, Uncertainty and Profit
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Book
A Monetary History of the United States
Milton Friedman,Anna J. Schwartz +1 more
TL;DR: The long-awaited monetary history of the United States by Friedman and Schwartz is in every sense of the term a monumental scholarly achievement as discussed by the authors, and the treatment of innumerable issues, large and small, have been brought to bear on the solution of complex and subtle economic issues.
Journal ArticleDOI
A Macroprudential Approach to Financial Regulation
Samuel G. Hanson,Anil K. Kashyap,Anil K. Kashyap,Anil K. Kashyap,Jeremy C. Stein,Jeremy C. Stein +5 more
TL;DR: In the aftermath of the 2008 financial crisis, there seems to be agreement among both academics and policymakers that financial regulation needs to move in a macro-prudential direction as discussed by the authors.
Journal ArticleDOI
Macroprudential policy – a literature review
TL;DR: The recent financial crisis has highlighted the need to go beyond a purely micro approach to financial regulation and supervision and the number of policy speeches, research papers and conferences that discuss a macro perspective on financial regulation has grown considerably.
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The Origins of Banking Panics: Models, Facts, and Bank Regulation
Charles W. Calomiris,Gary Gorton +1 more
TL;DR: This paper reviewed recent theoretical and empirical work on the origins of banking panics and found that adverse economic news, in concert with asymmetric information about the incidence of shocks, and problems of bank asset diversification associated with unit banking, seem to have led to bank panics.