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Principal-agent problems in commercial-bank failure decisions

Author

Listed:
  • Asli Demirgüč-Kunt

Abstract

The author develops a model that examines the regulator's role in the bank failure decision process, with attention given to the regulator's constraints and incentives.

Suggested Citation

  • Asli Demirgüč-Kunt, 1991. "Principal-agent problems in commercial-bank failure decisions," Working Papers (Old Series) 9106, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9106
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    References listed on IDEAS

    as
    1. Sinkey, Joseph F, Jr, 1975. "A Multivariate Statistical Analysis of the Characteristics of Problem Banks," Journal of Finance, American Finance Association, vol. 30(1), pages 21-36, March.
    2. David H. Pyle., 1983. "Pricing Deposit Insurance: The Effects of Mismeasurement," Research Program in Finance Working Papers 142, University of California at Berkeley.
    3. Robert B. Avery & Gerald A. Hanweck, 1984. "A dynamic analysis of bank failures," Research Papers in Banking and Financial Economics 74, Board of Governors of the Federal Reserve System (U.S.).
    4. Allan H. Meltzer, 1967. "Major Issues in the Regulation of Financial Institutions," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 482-482.
    5. Narayanan, M P, 1985. "Managerial Incentives for Short-term Results," Journal of Finance, American Finance Association, vol. 40(5), pages 1469-1484, December.
    6. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    7. Asli Demirgüč-Kunt, 1989. "Deposit-institution failures: a review of empirical literature," Economic Review, Federal Reserve Bank of Cleveland, vol. 25(Q IV), pages 2-18.
    8. James R. Barth & R. Dan Brumbaugh & Daniel Sauerhaft & George Wang, 1985. "Thrift institution failures: causes and policy issues," Proceedings 68, Federal Reserve Bank of Chicago.
    9. Daria B. Caliguire & James B. Thomson, 1987. "FDIC policies for dealing with failed and troubled institutions," Economic Commentary, Federal Reserve Bank of Cleveland, issue Oct.
    10. J. Huston McCulloch, 1981. "Interest Rate Risk and Capital Adequacy for Traditional Banks and Financial Intermediaries," NBER Chapters, in: Risk and Capital Adequacy in Commercial Banks, pages 223-248, National Bureau of Economic Research, Inc.
    11. Martin, Daniel, 1977. "Early warning of bank failure : A logit regression approach," Journal of Banking & Finance, Elsevier, vol. 1(3), pages 249-276, November.
    12. Altman, Edward I., 1977. "Predicting performance in the savings and loan association industry," Journal of Monetary Economics, Elsevier, vol. 3(4), pages 443-466, October.
    13. Kareken, John H & Wallace, Neil, 1978. "Deposit Insurance and Bank Regulation: A Partial-Equilibrium Exposition," The Journal of Business, University of Chicago Press, vol. 51(3), pages 413-438, July.
    14. David Pyle, 1983. "Pricing deposit insurance: the effects of mismeasurement," Working Papers in Applied Economic Theory 83-05, Federal Reserve Bank of San Francisco.
    15. J. Huston McCulloch, 1978. "Interest Rate Risk and Capital Adequacy for Traditional Banks and Financial Intermediaries," Boston College Working Papers in Economics 86, Boston College Department of Economics.
    16. Davidson, Russell & MacKinnon, James G., 1984. "Convenient specification tests for logit and probit models," Journal of Econometrics, Elsevier, vol. 25(3), pages 241-262, July.
    17. Sherman J. Maisel, 1981. "Risk and Capital Adequacy in Commercial Banks," NBER Books, National Bureau of Economic Research, Inc, number mais81-1.
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    Citations

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    Cited by:

    1. Ramon P. DeGennaro & James B. Thomson, 1992. "Capital forbearance and thrifts: an ex post examination of regulatory gambling," Working Papers (Old Series) 9209, Federal Reserve Bank of Cleveland.
    2. Kenneth Kasa & Mark M. Spiegel, 2008. "The role of relative performance in bank closure decisions," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
    3. Cole, Rebel A. & Gunther, Jeffery W., 1995. "Separating the likelihood and timing of bank failure," Journal of Banking & Finance, Elsevier, vol. 19(6), pages 1073-1089, September.
    4. Schüler, Martin, 2003. "Incentive Problems in Banking Supervision: The European Case," ZEW Discussion Papers 03-62, ZEW - Leibniz Centre for European Economic Research.

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