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Preventing Systemic Crises through Bank Transparency

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  • Ari Hyytinen
  • Tuomas Takalo

Abstract

The banking system is known to be vulnerable to self-fulfilling crises that are caused by depositors' co-ordination failure. We show that transparency regulation may prevent certain types of systemic crisis by eliminating the possibility of coordination failure. Copyright Banca Monte dei Paschi di Siena SpA, 2004

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Article provided by Banca Monte dei Paschi di Siena SpA in its journal Economic Notes.

Volume (Year): 33 (2004)
Issue (Month): 2 (07)
Pages: 257-273

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Handle: RePEc:bla:ecnote:v:33:y:2004:i:2:p:257-273

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Citations

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Cited by:
  1. Nicole Allenspach, 2009. "Banking and Transparency: Is More Information Always Better?," Working Papers 2009-11, Swiss National Bank.
  2. J.-P. Niinimäki, 2012. "Optimal Design of Bank Bailouts: The Case of Prompt Corrective Action," Finnish Economic Papers, Finnish Economic Association, vol. 25(1), pages 1-19, Spring.
  3. Faidon Kalfaoglou & Alexandros Sarris, 2006. "Modeling the Components of Market Discipline," Working Papers 36, Bank of Greece.
  4. Nier, Erlend W., 2005. "Bank stability and transparency," Journal of Financial Stability, Elsevier, vol. 1(3), pages 342-354, April.
  5. J-P. Niinimaki, 2011. "Optimal Design of Bank Bailouts: Prompt Corrective Action," Discussion Papers 69, Aboa Centre for Economics.

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