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Bank Insolvencies, Priority Claims and Systemic Risk

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  • Spiros Bougheas
  • Alan Kirman

Abstract

We review an extensive literature debating the merits of alternative priority structures for banking liabilities put forward by financial economists, legal scholars and policymakers. This work has focused exclusively on the relative advantages of each group of creditors to monitor the activities of bankers. We argue that systemic risk is another dimension that this discussion must include.

Suggested Citation

  • Spiros Bougheas & Alan Kirman, 2015. "Bank Insolvencies, Priority Claims and Systemic Risk," Discussion Papers 2015/08, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    • Handle: RePEc:not:notcfc:15/08
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    1. Spiros Bougheas & Alan Kirman, 2018. "Systemic risk and the optimal seniority structure of banking liabilities," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 47-54, January.

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