Bank Resolution Costs, Depositor Preference, and Asset Encumbrance /

Depositor preference and collateralization of borrowing may reduce the cost of settling the conflicts among creditors that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank rather than affect creditors' expected returns, should res...

Ամբողջական նկարագրություն

Մատենագիտական մանրամասներ
Հիմնական հեղինակ: Hardy, Daniel
Ձևաչափ: Ամսագիր
Լեզու:English
Հրապարակվել է: Washington, D.C. : International Monetary Fund, 2013.
Շարք:IMF Working Papers; Working Paper ; No. 2013/172
Առցանց հասանելիություն:Full text available on IMF
Նկարագրություն
Ամփոփում:Depositor preference and collateralization of borrowing may reduce the cost of settling the conflicts among creditors that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank rather than affect creditors' expected returns, should result in lower overall funding costs and thus a lower probability of distress despite increasing encumbrance of the bank's balance sheet. The benefit is maximized when resolution is initiated early enough for preferred depositors to remain fully protected.
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Ֆիզիկական նկարագրություն:1 online resource (30 pages)
Ձևաչափ:Mode of access: Internet
ISSN:1018-5941
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