Series: IMF Working Papers
Author(s): Kenichi Ueda , and Beatrice Weder di Mauro
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2012
Keywords: bank funding subsidy, bank bailout, probability, financial institutions, samples, financial stability, financial sector, Financial Institutions and Services: Government Policy and Regulation, Structure, Scope
Claimants to SIFIs receive transfers when governments are forced into bailouts. Ex ante, the bailout expectation lowers daily funding costs. This funding cost differential reflects both the structural level of the...