Optimal Prudential Regulation of Banks and the Political Economy of Supervision /

We consider a moral hazard economy in banks and production to study how incentives for risk taking are affected by the quality of supervision. We show that low interest rates may generate excessive risk taking. Because of a pecuniary externality, the market equilibrium may not be optimal and there i...

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Bibliografiske detaljer
Hovedforfatter: Tressel, Thierry
Andre forfattere: Verdier, Thierry
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2014.
Serier:IMF Working Papers; Working Paper ; No. 2014/090
Online adgang:Full text available on IMF