Illiquidity, insolvency, and banking regulation

Research, Preprint English OPEN
Cao, Jin;
(2010)
  • Publisher: München: Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
  • Related identifiers: doi: 10.5282/ubm/epub.11370
  • Subject: Wirtschaftspolitik | insolvency risk | liquidity risk | Finanzmärkte | liquidity risk; insolvency risk; liquidity regulation; equity requirement | Insolvenz | equity requirement | Volkswirtschaft | Finanzkrise | Bankrisiko | Basler Akkord | Munich Discussion Papers in Economics | liquidity regulation | G21 | Finanzwissenschaft | Systemrisiko | G28 | Bankenliquidität | E5 | Bankenaufsicht | Liquidität | Theorie
    • jel: jel:G21 | jel:E5 | jel:G28
      ddc: ddc:330 | ddc:300

This paper provides a compact framework for banking regulation analysis in the presence of uncertainty between systemic liquidity and solvency shocks. Extending the work by Cao & Illing (2009a, b), it is shown that systemic liquidity shortage arises endogenously as part... View more
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