Arbeitspapier
Optimally solving banks' legacy problems
We characterize policy interventions directed to minimize the cost to the deposit guarantee scheme and the taxpayers of banks with legacy problems. Non-performing loans (NPLs) with low and risky returns create a debt overhang that induces bank owners to forego profitable lending opportunities. NPL disposal requirements can restore the incentives to undertake new lending but, as they force bank owners to absorb losses, can also make them prefer the bank being resolved. For severe legacy problems, combining NPL disposal requirements with positive transfers is optimal and involves no confl ict between minimizing the cost to the authority and maximizing overall surplus.
- ISBN
-
978-92-9472-083-2
- Sprache
-
Englisch
- Erschienen in
-
Series: ESRB Working Paper Series ; No. 96
- Klassifikation
-
Wirtschaft
Financial Crises
Financial Institutions and Services: General
Financial Institutions and Services: Government Policy and Regulation
- Thema
-
non performing loans
deposit insurance
debt overhang
optimal intervention
state aid
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Segura, Anatoli
Suárez, Javier
- Ereignis
-
Veröffentlichung
- (wer)
-
European Systemic Risk Board (ESRB), European System of Financial Supervision
- (wo)
-
Frankfurt a. M.
- (wann)
-
2019
- DOI
-
doi:10.2849/340165
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Segura, Anatoli
- Suárez, Javier
- European Systemic Risk Board (ESRB), European System of Financial Supervision
Entstanden
- 2019
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