Are bank bailouts welfare working? / by Malik Shukayev and Alexander Ueberfeldt.: FB3-5/2021-56E-PDF
"The financial sector bailouts seen during the Great Recession generated substantial opposition and controversy. We assess the welfare benefits of government-funded emergency support to the financial sector, taking into account its effects on risk-taking incentives. In our quantitative general equilibrium model, the financial crisis probability depends on financial intermediaries’ balance sheet choices, influenced by capital adequacy constraints and ex ante known emergency support provisions. These policy tools interact to make financial sector bailouts welfare improving when capital adequacy constraints are consistent with the current Basel III regulation, but potentially welfare decreasing with looser capital adequacy regulation existing before the Great Recession"--Abstract.
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publications.gc.ca/pub?id=9.904862&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Are bank bailouts welfare working? / by Malik Shukayev and Alexander Ueberfeldt. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-56 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Last updated: November 10, 2021." Includes bibliographical references (pages 36-39). |
| Publishing information | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021. ©2021 |
| Author / Contributor | Shukayev, Malik, author. |
| Description | 1 online resource (ii, 52 pages) : charts. |
| Catalogue number |
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| Subject terms | Banks and banking -- Econometric models. Financial crises -- Econometric models. Bank loans -- Econometric models. Banques -- Modèles économétriques. Crises financières -- Modèles économétriques. Prêts bancaires -- Modèles économétriques. |
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