Banking crises and government intervention

García-Palacios, Jaime H.; Hasman, Augusto y Samartín, Margarita (2014). Banking crises and government intervention. "Journal of Financial Stability", v. 15 ; pp. 32-42. ISSN 1572-3089. https://doi.org/10.1016/j.jfs.2014.08.007.

Descripción

Título: Banking crises and government intervention
Autor/es:
  • García-Palacios, Jaime H.
  • Hasman, Augusto
  • Samartín, Margarita
Tipo de Documento: Artículo
Título de Revista/Publicación: Journal of Financial Stability
Fecha: Diciembre 2014
Volumen: 15
Materias:
Palabras Clave Informales: Banking crises; Capital requirements; Government intervention; Moral hazard
Escuela: E.T.S.I. Caminos, Canales y Puertos (UPM)
Departamento: Ingeniería Civil: Hidráulica, Energía y Medio Ambiente
Licencias Creative Commons: Reconocimiento - Sin obra derivada - No comercial

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Resumen

Intervention has taken different forms in different countries and periods of time. Moreover, recent episodes showed that in front of an imminent crisis, the promise of no interventions made by governments is barely credible. In this paper we address the problem of resolving banking crises from the government perspective, taking into account the fact that preventing banking crises is crucial for the government. In addition, we introduce the moral hazard problem, inherent in the banking system, and consider the interaction between regulation, policy measures and banks’ behavior. To the best of our knowledge, this is the first paper that compares different policy plans to resolve banking crises in an environment where insufficiently capitalized banks have incentives to take risk, and the government has to decide whether to provide public services or impede crises. We show that when individuals highly value public services then the best policy in terms of welfare is to apply the tax on early withdrawals, as the government can transfer those taxes to the whole population by investing in public services (although at some cost). Conversely, when individuals assign a low value to consuming public services, recapitalization is the dominant policy. Finally, when the probability of a crisis is sufficiently high, capital requirements should be used

Proyectos asociados

TipoCódigoAcrónimoResponsableTítulo
Gobierno de EspañaECO2013-42849-PSin especificarSin especificarSin especificar

Más información

ID de Registro: 40230
Identificador DC: http://oa.upm.es/40230/
Identificador OAI: oai:oa.upm.es:40230
Identificador DOI: 10.1016/j.jfs.2014.08.007
URL Oficial: http://www.sciencedirect.com/science/article/pii/S1572308914000813
Depositado por: Memoria Investigacion
Depositado el: 19 May 2016 12:47
Ultima Modificación: 19 May 2016 12:47
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