Banking Crises and Bank Rescues: The Effect of Reputation
AbstractThis paper focuses on bank rescue packages and on the behaviour of troubled banks in light of rescue offers. A puzzling feature of experience with banking crises is that in many cases policy authorities make offers of bank rescue, and banks are reluctant to accept these offers. We study situations in which regulators have decided to offer bank rescue plans, and we show that a combination of factors, including bankers' reputational concerns, can explain banks' potential reluctance to accept offers of recapitalisation.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 290.
Date of creation: 01 Jan 2000
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banking crises; banking regulation; financial reform;
Other versions of this item:
- Jenny Corbett & Janet Mitchell, 2000. "Banking crises and bank rescues: the effect of reputation," Proceedings, Federal Reserve Bank of Cleveland, pages 474-517.
- Corbett, Jenny & Mitchell, Janet, 2000. "Banking Crises and Bank Rescues: The Effect of Reputation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(3), pages 474-512, August.
- NEP-ALL-2001-10-01 (All new papers)
- NEP-CBA-2001-10-01 (Central Banking)
- NEP-PKE-2001-10-01 (Post Keynesian Economics)
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