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Preventing systemic crises through bank transparency

  • Hyytinen, Ari

    ()

    (Bank of Finland, Financial Markets and Statistics)

  • Takalo, Tuomas

    ()

    (Bank of Finland Research)

The banking system is known to be vulnerable to self-fulfilling crises that are caused by depositors’ coordination failure. We show that transparency regulation may prevent certain types of systemic crises by eliminating the possibility of the coordination failure.

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File URL: http://www.suomenpankki.fi/en/julkaisut/tutkimukset/keskustelualoitteet/Documents/0325.pdf
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Paper provided by Bank of Finland in its series Research Discussion Papers with number 25/2003.

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Length: 30 pages
Date of creation: 21 Oct 2003
Date of revision:
Handle: RePEc:hhs:bofrdp:2003_025
Contact details of provider: Postal: Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland
Web page: http://www.suomenpankki.fi/en/

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