The pricing of bank debt guarantees
| Authors |
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| Publication date |
2010
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| Journal |
Economics Letters
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| Volume | Issue number |
108 | 2
|
| Pages (from-to) |
119-121
|
| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
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| Abstract |
We analyze the desirability of fair pricing of government guarantees for bank liabilities. Fair pricing is desirable only if the banking sector is sufficiently transparent. In opaque banking systems, fair pricing may exacerbate banks' incentive to take excessive risks.
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| Document type |
Article
|
| Language |
English
|
| Published at |
https://doi.org/10.1016/j.econlet.2010.04.045
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