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Allocating bank regulatory powers: lender of last resort, deposit insurance and supervision

  • Charles M. Kahn

    (University of Illinois at Urbana-Champaign - Department of Finance)

  • João A. C. Santos

    (Federal Reserve Bank of New York)

Bank regulation in most countries encompasses a lender of last resort, deposit insurance and supervision. These functions are interrelated and therefore require coordination among the authorities responsible for them. These authorities, however, are often established with different mandates, some of which are likely to be in conflict. We consider these issues by studying the optimal institutional allocation of such functions.

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Paper provided by Bank for International Settlements in its series BIS Working Papers with number 102.

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Length: 46 pages
Date of creation: Aug 2001
Date of revision:
Handle: RePEc:bis:biswps:102
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