Expanded government guarantees for bank liabilities: Selected issues
Government provision of a safety net for financial institutions has been a key element of the policy response to the current crisis. In the process, existing guarantees have been expanded and new ones introduced, including, in particular, in relation to bank liabilities. Among other things, such gua...
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Format: | Elektronisch Artikel |
Sprache: | English |
Veröffentlicht: |
Paris
OECD Publishing
2009
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Schlagworte: | |
Online-Zugang: | Volltext |
Zusammenfassung: | Government provision of a safety net for financial institutions has been a key element of the policy response to the current crisis. In the process, existing guarantees have been expanded and new ones introduced, including, in particular, in relation to bank liabilities. Among other things, such guarantees create costs that arise as a result of potential distortions of incentives and competition. To limit such distortions it is important to specify risk-based premiums for additional government-provided guarantees, and to the extent that guarantees are priced appropriately potential distortions also should be limited. The evidence however has been mixed in this regard. The present article discusses pricing and some other selected issues related to the recent expansion of guarantees for bank liabilities. |
Beschreibung: | 1 Online-Ressource (35 p.) |
DOI: | 10.1787/fmt-v2009-art4-en |
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spelling | Schich, Sebastian VerfasserIn aut Expanded government guarantees for bank liabilities Selected issues Sebastian, Schich Paris OECD Publishing 2009 1 Online-Ressource (35 p.) Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier Government provision of a safety net for financial institutions has been a key element of the policy response to the current crisis. In the process, existing guarantees have been expanded and new ones introduced, including, in particular, in relation to bank liabilities. Among other things, such guarantees create costs that arise as a result of potential distortions of incentives and competition. To limit such distortions it is important to specify risk-based premiums for additional government-provided guarantees, and to the extent that guarantees are priced appropriately potential distortions also should be limited. The evidence however has been mixed in this regard. The present article discusses pricing and some other selected issues related to the recent expansion of guarantees for bank liabilities. Finance and Investment Enthalten in OECD Journal: Financial Market Trends Vol. 2009, no. 1, p. 89-123 volume:2009 year:2009 number:1 pages:89-123 FWS01 ZDB-13-SOC FWS_PDA_SOC https://doi.org/10.1787/fmt-v2009-art4-en Volltext |
spellingShingle | Schich, Sebastian Expanded government guarantees for bank liabilities Selected issues Finance and Investment |
title | Expanded government guarantees for bank liabilities Selected issues |
title_auth | Expanded government guarantees for bank liabilities Selected issues |
title_exact_search | Expanded government guarantees for bank liabilities Selected issues |
title_full | Expanded government guarantees for bank liabilities Selected issues Sebastian, Schich |
title_fullStr | Expanded government guarantees for bank liabilities Selected issues Sebastian, Schich |
title_full_unstemmed | Expanded government guarantees for bank liabilities Selected issues Sebastian, Schich |
title_short | Expanded government guarantees for bank liabilities |
title_sort | expanded government guarantees for bank liabilities selected issues |
title_sub | Selected issues |
topic | Finance and Investment |
topic_facet | Finance and Investment |
url | https://doi.org/10.1787/fmt-v2009-art4-en |
work_keys_str_mv | AT schichsebastian expandedgovernmentguaranteesforbankliabilitiesselectedissues |