Series: IMF Working Papers
Author(s): Luis Brandao Marques , Ricardo Correa , and Horacio Sapriza
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 02 May 2013
Keywords: Bank risk, Market Discipline, Government Support, Bank Regulation, bank risk taking, banking, deposit insurance, foreign currency deposit, Government Policy and Regulation, Governmental Loans and Credits
Government support to banks through the provision of explicit or implicit guarantees affects the willingness of banks to take on risk by reducing market discipline or by increasing charter value. We use an internat...