Artikel

Bad Bank(s) and the recapitalisation of the banking sector

With banking sectors worldwide still suffering from the effects of the financial crisis, public discussion of plans to place toxic assets in one or more bad banks has gained steam in recent weeks. The following paper presents a plan how governments can effi ciently relieve ailing banks from toxic assets by transferring these assets into a publicly sponsored workout unit, a so-called bad bank. This plan effectively addresses three key challenges. It provides for the transparent removal of toxic assets and gives the banks a fresh start. At the same time, it offers the chance to keep the cost to taxpayers low. In addition, the risk of moral hazard is curtailed.

Language
Englisch

Bibliographic citation
Journal: Intereconomics ; ISSN: 1613-964X ; Volume: 44 ; Year: 2009 ; Issue: 4 ; Pages: 215-225 ; Heidelberg: Springer

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Schäfer, Dorothea
Zimmermann, Klaus F.
Event
Veröffentlichung
(who)
Springer
(where)
Heidelberg
(when)
2009

DOI
doi:10.1007/s10272-009-0298-7
Handle
Last update
10.03.2025, 11:46 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Schäfer, Dorothea
  • Zimmermann, Klaus F.
  • Springer

Time of origin

  • 2009

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