- Author
- Ignatowski Magdalena (Goethe University Frankfurt, Germany, Ph.D. student), Korte Josef (Goethe University Frankfurt, Germany, Ph.D. student)
- Title
- Changing Bank Resolution Regimes - the U.S. Case
- Source
- Bezpieczny Bank, 2014, nr 2 (55), s. 91-99, bibliogr. 14 poz.
- Keyword
- Kryzys finansowy, Banki, Kryzys bankowy, Niewypłacalność, Upadłość banku, Materiały konferencyjne
Financial crisis, Banks, Banking crisis, Insolvency, Bank bankruptcy, Conference materials - Note
- summ.
- Country
- Stany Zjednoczone Ameryki
United States of America (USA) - Abstract
- Existing resolution tools proved mostly inappropriate when governments were confronted with seriously distressed banks during the global financial crisis and the subsequent European sovereign debt crisis. Bank regulators and legislators have realized the importance of effective and appropriate bank resolution mechanisms and have brought into force significant changes to resolution regimes in an effort to prevent future crises. This article deals with the question whether resolution mechanisms can discipline banks. We revisit economic theory to determine the requirements for resolution mechanisms to induce incentives for prudent bank behavior and apply this concept in order to examine one particular change in resolution regulation, the introduction of the Orderly Liquidation Authority. Taken together, we find that the Orderly Liquidation Authority can be interpreted as a significant improvement to the U.S. resolution regime. (original abstract)
- Accessibility
- The Main Library of the Cracow University of Economics
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of the Wroclaw University of Economics - Bibliography
-
- Acharya, V.V. and Yorulmazer, T. (2007): "Too many to fail - An analysis of time-inconsistency in bank closure policies." Journal of Financial Intermediation, 16(1), 1-31.
- Ashcraft, A.B. (2005). "Are banks really special? New evidence from the FDIC-induced failure of healthy banks." American Economic Review, 95(5), 1712-1730.
- Black, L.K. and Hazelwood, L.N. (2013): "The effect of TARP on bank risk-taking." Journal of Financial Stability, 9(4), 790-803.
- Bliss, R.R., and Kaufman, G.G. (2006): "U.S. corporate and bank insolvency regimes: An economic comparison and evaluation." Working Paper WP-06-01, Federal Reserve Bank of Chicago.
- Brown, C.O. and Dinç, I.S. (2011): "Too many to fail? Evidence of regulatory forbearance when the banking sector is weak." Review of Financial Studies, 24(4), 1378-1405.
- Dam, L. and Koetter, M. (2012): "Bank bailouts and moral hazard: Evidence from Germany." Review of Financial Studies, 25(8), 2343-2380.
- DeYoung, R., Kowalik, M. and Reidhill, J. (2013): "A theory of failed bank resolution: Technological change and political economics." Journal of Financial Stability, forthcoming.
- Duchin, R. and Sosyura, D. (2013): "Safer ratios, riskier portfolios: Banks' response to government aid." Working Paper 1165, Ross School of Business.
- FDIC (2011): "The orderly liquidation of Lehman Brothers Holdings Inc. under the Dodd-Frank Act." FDIC Quarterly, 5(2), 31-49.
- Ignatowski, M. and Korte, J. (2014): "Wishful thinking or effective threat? Tightening bank resolution regimes and bank risk-taking." Working Paper Series No 1659, European Central Bank.
- Kasa, K. and Spiegel, M.M. (2008): "The role of relative performance in bank closure decisions." Federal Reserve Bank of San Francisco Economic Review, 17-29.
- Korte, J. (2013): "Catharsis - The real effects of bank insolvency and resolution." Working Paper 2013-21, Deutsche Bundesbank.
- Mailath, G.J. and Mester, L.J. (1994): "A positive analysis of bank closure."
- Marinc, M. and Vlahu, R. (2011): The Economics of Bank Bankruptcy Law. Springer.
- Cited by
- ISSN
- 1429-2939
- Language
- eng
