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

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  • Charles M. Kahn

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

  • João A. C. Santos

    (Federal Reserve Bank of New York)

Abstract

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.

Suggested Citation

  • Charles M. Kahn & João A. C. Santos, 2001. "Allocating bank regulatory powers: lender of last resort, deposit insurance and supervision," BIS Working Papers 102, Bank for International Settlements.
  • Handle: RePEc:bis:biswps:102
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    References listed on IDEAS

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