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Rebalancing the three pillars of Basel II Author info | Abstract | Publisher info | Download info | Related research | Statistics Jean-Charles Rochet
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The author observes that the three pillars of Basel II seem uneven: Pillars 1 and 2 have eclipsed Pillar 3 - market discipline and disclosure - in the Basle Committee's deliberations. He works through a banking model of the three Pillars, shows how the optimal liquidation limit varies with bank liability structure and the regulatory regime, and argues that market discipline, via mandatory subordinated debt issuance, can reduce forbearance by supervisors.
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Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review .
Volume (Year): (2004)
Issue (Month): Sep ()
Pages: 7-21
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Handle: RePEc:fip:fednep:y:2004:i:sep:p:7-21:n:v.10no.2Contact details of provider: Postal: 33 Liberty Street, New York, NY 10045-0001 Email: Web page: http://www.newyorkfed.org/ More information through EDIRC
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Keywords: Bank supervision Bank capital Banking law Other versions of this item:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Polo, Andrea, 2007.
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Philip Bond & Itay Goldstein & Edward S. Prescott, 2006.
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