Banking Regulation and Prompt Corrective Action
نویسندگان
چکیده
منابع مشابه
Banking Regulation and Prompt Corrective Action
We explore the rationale for regulatory rules that prohibit banks from developing some of their natural activities when their capital level is low, as epitomized by the US Prompt Corrective Action (PCA). This paper is built on two insights. First, in a moral hazard setting, capital requirement regulation may force banks to hold a large fraction of safe assets which, in turn, may lower their inc...
متن کاملForbearance and prompt corrective action - May 2005
This paper investigates whether a bank regulator should terminate problem banks promptly or exercise forbearance. We construct a dynamic model economy in which entrepreneurs pledge collateral, borrow from banks, and invest in long-term projects. We assume that collateral value has aggregate risk over time, that in any period entrepreneurs can abscond with the projects but losing the collateral,...
متن کاملThe Effects of Legislating Prompt Corrective Action on the Bank Insurance Fund
I HE FEDERAL DEPOSIT lnsur-ance Corporation Improvement Act of 1991 (hereafter, FDICIA) authorized more federal government funds for the Federal Deposit Insurance Corporation and made major changes in the supervision and regulation of depository institutions. One section of FDICIA requires supervisors to take prompt corrective action when an institution’s capital ratio falls below the required ...
متن کاملOptimal Regulation with Exemptions and Corrective Taxes
Regulation produces enormous benefits and costs, both of which are greatly influenced by myriad exemptions and preferences for small firms that contribute a significant minority of output in many sectors. These firms may generate a disproportionate share of harm due to their being exempt and because exemption induces additional harmful activity to be channeled their way. This article analyzes o...
متن کاملCorrective action planning using RBF neural network
In recent years, voltage limit violation and power system load-generation imbalance, i.e., line loading limit violation have been responsible for several incidents of major network collapses leading to partial or even complete blackouts. Alleviation of line overloads is the suitable corrective action in this regard. The control action strategies to limit the line loading to the security limits ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1153447