Arbeitspapier
Bank runs, liquidity and credit risk
In this paper, I develop a model that addresses the links between banks liquidity outlook and their incentives to take credit risk. Assuming that both bank-specific liquidity shocks and credit losses are necessary to provoke bank runs, the model predicts that a bank s incentives to mitigate its credit risk by screening decrease if the probability of a bank-specific liquidity shock declines. This suggests that the benign liquidity outlook prevailing prior to the subprime crisis may have contributed to the lack of screening by banks that has been an important causal factor in the crisis.
- ISBN
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978-952-462-441-1
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 12/2008
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Topi, Jukka
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
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Helsinki
- (when)
-
2008
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Topi, Jukka
- Bank of Finland
Time of origin
- 2008
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