Arbeitspapier
The Pricing of Bank Debt Guarantees
We analyze the optimal pricing of government-sponsored bank debt guarantees within the context of an asset substitution framework. We show that the desirability of fair pricing of guarantees depends on the degree of transparency of the banking sector: in relatively opaque banking systems, fair pricing exacerbates banks' incentive to take excessive risks, whereas the opposite is true in relatively transparent banking systems.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. 09-057/2
- Classification
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Corporate Finance and Governance: Government Policy and Regulation
- Subject
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Debt Guarantees
Fair Pricing
Financial Stability
Bankgarantie
Risikoprämie
Kreditrisiko
Moral Hazard
Bankenkrise
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Arping, Stefan
- Event
-
Veröffentlichung
- (who)
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Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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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
- Arping, Stefan
- Tinbergen Institute
Time of origin
- 2009
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