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Trade-offs in Bank Resolution By Giovanni Dell'Ariccia

Trade-offs in Bank Resolution

By Giovanni Dell'Ariccia

  • Release Date: 2018-02-09
  • Genre: Economics
  • $4.99

Description

This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-off involved between bail-outs, bail-ins, and larger capital buffers. The note then looks for empirical evidence to assess the moral hazard consequences of bail-outs and the systemic spillovers from bail-ins.