Quotation Bhattacharya, Sudipto , Plank, Manfred, Strobl, Günter, Zechner, Josef. 2002. Bank Capital Regulation With Random Audits. Journal of Economic Dynamics & Control 26 S. 1301-1321.


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Abstract

We consider a model of optimal bank closure rules (cum capital replenishment by banks), with Poisson-distributed audits of the bank’s asset value by the regulator, with the goal of eliminating (ameliorating) the incentives of levered bank shareholders/managers to take excessive risks in their choice of underlying assets. The roles of (tax or other) subsidies on deposit interest payments by the bank, and of the auditing frequency are examined. 2002 Elsevier Science B.V. All rights reserved

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Economic Dynamics & Control
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-A, VW-B, WH-A
Language English
Title Bank Capital Regulation With Random Audits
Volume 26
Year 2002
Page from 1301
Page to 1321
Reviewed? Y
DOI http://dx.doi.org/10.1016/S0165-1889(01)00045-8

Associations

People
Zechner, Josef (Details)
External
Bhattacharya, Sudipto (The London School of Economics and Political Science, United Kingdom)
Plank, Manfred (University of Applied Sciences, Germany)
Strobl, Günter
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