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Monitoring, Liquidation, and Security Design Author info | Abstract | Publisher info | Download info | Related research | Statistics Repullo, R.
Suarez, J.
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By identifying the possibility of imposing a credible threat of liquidation as the key role of informed (bank) finance in a moral hazard context, and showing how credibility fails when liquidity values are low, this paper identifies the circumstances under which a mixture of informed and uninformed finance is optimal and explains why bank debt is typically secured, senior, and tightly held.
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Paper provided by Banca Italia - Servizio di Studi in its series Papers with number
273.
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Length: 44 pages
Date of creation: 1996Date of revision:
Handle: RePEc:fth:banita:273Contact details of provider: Postal: Banca d'Italia-Servizio Studi-Divisione Biblioteca e Pubblicazioni - Via N azionale, 91 -00184 Rome, Italy. Web page: http://www.bancaditalia.it/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).
Keywords: BANKS ; FINANCIAL MARKET ; MORAL HAZARD ; Other versions of this item:
Find related papers by JEL classification: G20 - Financial Economics - - Financial Institutions and Services - - - General G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
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