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The effect of solvency regulation to a bank

✍ Scribed by Akira Momota; Yasuo Maeda


Book ID
114293771
Publisher
Elsevier Science
Year
2004
Tongue
English
Weight
306 KB
Volume
16
Category
Article
ISSN
0922-1425

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Do higher solvency ratios reduce the cos
✍ Robert K. Eastwood πŸ“‚ Article πŸ“… 2004 πŸ› John Wiley and Sons 🌐 English βš– 123 KB

## Abstract The relationship between solvency constraints and bank behaviour in the presence of fixed rate deposit insurance is investigated. A rise in the minimum solvency ratio does not necessarily reduce the adverse consequences of moral hazard: bank efficiency may fall and expected bailout cost