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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Bibliografische gegevens
Hoofdauteur: Tressel, Thierry
Andere auteurs: Verdier, Thierry
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2014.
Reeks:IMF Working Papers; Working Paper ; No. 2014/090
Online toegang:Full text available on IMF