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Preventing Systemic Crises through Bank Transparency

  • Ari Hyytinen
  • Tuomas Takalo

The banking system is known to be vulnerable to self-fulfilling crises that are caused by depositors' co-ordination failure. We show that transparency regulation may prevent certain types of systemic crisis by eliminating the possibility of coordination failure. Copyright Banca Monte dei Paschi di Siena SpA, 2004

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Article provided by Banca Monte dei Paschi di Siena SpA in its journal Economic Notes.

Volume (Year): 33 (2004)
Issue (Month): 2 (07)
Pages: 257-273

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Handle: RePEc:bla:ecnote:v:33:y:2004:i:2:p:257-273
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