Concealment of Risk and Regulation of Bank Risk Taking
AbstractThis paper analyzes the effectiveness of banking regulation when risk can be concealed from the regulator. Three banking regimes are considered: regulation with direct controls, incentives-based regulation, and laissez-faire banking. The relative performance of the three regimes depends on the effectiveness of monitoring. Regulation with direct controls is superior when monitoring effectiveness is low, while incentives-based regulation is superior when monitoring effectiveness is high. Laissez-faire banking is equivalent to incentives-based regulation if market analysts and the regulator with direct controls can better restrain banks' risk taking than can the market; this result applies when banks can conceal much of their risk from the regulator. Copyright 1990 by Kluwer Academic Publishers
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Springer in its journal Journal of Regulatory Economics.
Volume (Year): 2 (1990)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100298
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Arturo Estrella, 2004. "Bank Capital and Risk: Is Voluntary Disclosure Enough?," Journal of Financial Services Research, Springer, vol. 26(2), pages 145-160, October.
- Richard W. Kopcke, 1991. "The capitalization and portfolio risk of insurance companies," Working Papers 91-3, Federal Reserve Bank of Boston.
- Fischer, Klaus P. & Fournier, Eric M., 2002. "Does Corporate Governance Matter in Deposit Insurance? DI and Moral Hazard in Joint Stock and Mutual Financial Intermediaries," Cahiers de recherche 0206, CIRPEE.
- Pereira, Luis Brites, 2006. "Bailouts, Taxation and Financial Supervision," FEUNL Working Paper Series wp483, Universidade Nova de Lisboa, Faculdade de Economia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.