par MILLER, MARCUS;ZHANG, LEI
Référence Brussels economic review, 56, 3-4, page (365-388), 11
Publication Publié, 2013
Article révisé par les pairs
Résumé : ABSTRACT:The classic Diamond-Dybvig model of banking assumes perfect competition and abstracts from issues ofmoral hazard. To reflect conditions prevailing in UK banking, however, we incorporate market powerand risk-taking by banks with limited liability, with explicit analytical results for the case wheredepositors are highly risk averse. We show how the effectiveness of bank franchise value in checkingrisk-taking may be undermined by the prospect of bailouts; and how bail-in provisions are beingdesigned to correct this.

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