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THE IMPORTANCE OF USING BANK SUPERVISION AND REGULATION TO PROMOTE MARKET DISCIPLINE OF BANKS

THE IMPORTANCE OF USING BANK SUPERVISION AND REGULATION TO PROMOTE MARKET DISCIPLINE OF BANKS Rochet studies how one might protect central banks while preserving the flexibility of the current interbank market. Landier and Ueda introduce the benchmark Modigliani-Miller Framework, assume no scope for debt renegotiation and compares several restructuring options under fixed restructuring surplus to achieve the target default probability of a bank, and examine how the restructuring design affects the surplus. Barth et al. seek to identify which approach to regulation and supervision best enhances bank performance. JEL: E58, G24 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economics, Management, and Financial Markets Addleton Academic Publishers

THE IMPORTANCE OF USING BANK SUPERVISION AND REGULATION TO PROMOTE MARKET DISCIPLINE OF BANKS

Economics, Management, and Financial Markets , Volume 4 (3): 190-195 – Jan 1, 2010

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Publisher
Addleton Academic Publishers
Copyright
© 2009 Addleton Academic Publishers
ISSN
1842-3191
eISSN
1938-212X
Publisher site
See Article on Publisher Site

Abstract

Rochet studies how one might protect central banks while preserving the flexibility of the current interbank market. Landier and Ueda introduce the benchmark Modigliani-Miller Framework, assume no scope for debt renegotiation and compares several restructuring options under fixed restructuring surplus to achieve the target default probability of a bank, and examine how the restructuring design affects the surplus. Barth et al. seek to identify which approach to regulation and supervision best enhances bank performance. JEL: E58, G24

Journal

Economics, Management, and Financial MarketsAddleton Academic Publishers

Published: Jan 1, 2010

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