Shadow Banking and Market Discipline on Traditional Banks.
We present a model in which shadow banking arises endogenously and undermines market discipline on traditional banks. Depositors' ability to re-optimize in response to crises imposes market discipline on traditional banks: these banks optimally commit to a safe portfolio strategy to prevent ear...
| Format: | Journal |
|---|---|
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2017.
|
| Series: | IMF Working Papers; Working Paper ;
No. 2017/285 |
| Online Access: | Full text available on IMF |