English, Article, Journal or magazine article edition: Burden Sharing in a Banking Crisis in Europe Dirk Schoenmaker; Charles Goodhart

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/45844
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Burden Sharing in a Banking Crisis in Europe
Author
  • Dirk Schoenmaker
  • Charles Goodhart
Physical Description
  • preprint
Notes
  • Pan-European banks are starting to emerge, while arrangements for financial supervision and stability are still nationally rooted. This raises the issue who should bear the burden of any proposed recapitalisation should failures occur in large cross-border banks. A recapitalisation is efficient if the social benefits (preserving systemic stability) exceed the cost of recapitalisation. Using the multi-country model of Freixas (2003), it is shown that ex post negotiations on burden sharing lead to an underprovision of recapitalisations.We explore different ex ante burden sharing mechanisms. The first is a general scheme financed from the seigniorage of participating central banks (generic burden sharing). The second relates the burden to the location of the assets of the bank to be recapitalised (specific burden sharing). As a country's benefits and that country's contribution to the costs are better aligned in the specific scheme, the latter is better able to overcome the co-ordination failure. Finally, decision-making procedures for administering an ex ante burden sharing mechanism are required.Download Paper
  • RePEc:fmg:fmgsps:sp164
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment