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Preventing Systemic Crises through Bank Transparency

  • Hyytinen, Ari
  • Takalo, Tuomas

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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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 776.

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Length: 17 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:rif:dpaper:776
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