Financial Institutions, Contagious Risks, and Financial Crises
dc.contributor.author | Huang, Haizhou | en_US |
dc.contributor.author | Xu, Chenggang | en_US |
dc.date.accessioned | 2006-08-01T15:41:52Z | |
dc.date.available | 2006-08-01T15:41:52Z | |
dc.date.issued | 2001-01-01 | en_US |
dc.identifier.other | RePEc:wdi:papers:2001-444 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/39828 | en_US |
dc.description.abstract | In this paper contagious risks and financial crises are endogenized through the interactions among corporations, banks, and the interbank market. We show that the lack of financial discipline in a single-bank-financing economy generates informational problems and thus the malfunction of the interbank market, which constitutes a mechanism of financial contagion and may lead to a financial crisis. In contrast, financial discipline in an economy with diversified financial institutions leads to timely information disclosure from firms to banks and improves the informational environment of the interbank market. With symmetric information in the interbank market, bank runs are contained to insolvent banks and financial crises are prevented. Our theory sheds light on the causes and timing of the East Asian crisis; it also has important policy implications for the lender of last resort and banking reform. | en_US |
dc.format.extent | 88820 bytes | |
dc.format.extent | 3151 bytes | |
dc.format.extent | 1158111 bytes | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | application/pdf | |
dc.language.iso | en_US | en_US |
dc.relation.ispartofseries | 444 | en_US |
dc.subject | Banking and Finance, International Trade and Finance, Financial Institutions, Contagious Risks, Financial Crises | en_US |
dc.title | Financial Institutions, Contagious Risks, and Financial Crises | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/39828/3/wp444.pdf | en_US |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.